Apple is set to introduce a new device leasing program called ‘Apple Upgrade’ on July 28, 2026, in partnership with Klarna. This initiative allows U.S. customers to lease various Apple products, including iPhones, iPads, Macs, and Apple Watches, through both online and physical Apple Stores.
The program offers 24-month lease terms for iPhones and Apple Watches, and 36-month terms for iPads and Macs. Customers have the flexibility to pay off the device early, upgrade to a newer model before the term ends, or choose to keep or return the device after the lease period concludes. Notably, entry-level devices such as the Apple Watch SE, the base iPad, the iPhone 16, and the MacBook Neo are excluded from this program.
Unlike the previous iPhone Upgrade Program, ‘Apple Upgrade’ does not include AppleCare+ coverage. Customers interested in AppleCare+ will need to purchase it separately. Additionally, the program requires a soft credit check for eligibility, and certain fees may apply in specific cases.
Apple plans to discontinue new enrollments in its existing iPhone Upgrade Program once ‘Apple Upgrade’ launches. This move is part of Apple’s strategy to offer more flexible financing options and to address the rising costs of hardware components, particularly memory and storage chips, which have been impacted by increased demand in the AI industry.
By partnering with Klarna, a well-known ‘buy now, pay later’ service, Apple aims to provide consumers with more manageable monthly payments, potentially making its products more accessible amid fluctuating tech market conditions.
This shift towards a leasing model reflects a broader trend in the tech industry, where companies are exploring subscription-based services to maintain steady revenue streams and adapt to changing consumer preferences. However, it also raises questions about ownership and the long-term value proposition for consumers who may prefer to own their devices outright.
