Apple is set to introduce a new installment program called ‘Apple Upgrade’ on July 28, 2026, effectively replacing the existing iPhone Upgrade Program. This new initiative allows customers to lease a variety of Apple products, including iPhones, iPads, Macs, and Apple Watches, through financing provided by Klarna.
Under the Apple Upgrade program, customers can lease iPhones and Apple Watches for 24 months, while Macs and iPads are available for 36-month terms. Participants have the flexibility to upgrade to newer models during the lease period or at its conclusion. Additionally, they can choose to pay off the plan early, keep the device, or return it. However, certain actions may incur additional fees, and approval for the program requires a soft credit check by Klarna.
It’s important to note that not all Apple products are eligible for this program. Excluded items include the Apple Watch SE, the base-level iPad, the iPhone 16, and the MacBook Neo. Furthermore, the program is not available for business and education purchases. Unlike the previous iPhone Upgrade Program, AppleCare is not included in the Apple Upgrade plan.
Existing customers enrolled in the iPhone Upgrade Program can continue their current plans, but new enrollments will cease as Apple shifts focus to the Apple Upgrade program. This transition marks a significant change in Apple’s financing options, offering a broader range of products under a unified leasing program.
Apple’s collaboration with Klarna for this program builds upon their existing partnership. In October 2024, Klarna’s installment options were integrated into Apple Pay for online and in-app purchases. Following the discontinuation of Apple Pay Later in 2024, Apple introduced a new Pay Later option in the Wallet app in September 2025, allowing users to select Klarna as an installment provider.
One notable aspect of the Apple Upgrade program is the inclusion of measures to mitigate payment defaults. Code found in the iOS 27 beta indicates that if a user misses a payment, Apple may restrict iPhone usage, potentially limiting access to certain apps like the Wallet app.
By expanding its financing options to include a wider range of products and partnering with Klarna, Apple aims to provide customers with more flexible purchasing options. However, consumers should be aware of the program’s terms, including potential fees and device restrictions, to make informed decisions about their purchases.
