Apple Replaces iPhone Upgrade Program With Klarna-Powered Leasing Option
Apple has officially retired its long-running iPhone Upgrade Program in the United States, replacing it with a broader leasing service called Apple Upgrade. Developed with Klarna, the new program expands beyond iPhones to include iPads, Macs, and Apple Watches, giving customers another way to spread the cost of increasingly expensive hardware.
Eligible customers can choose 12- or 24-month leases for iPhones and Apple Watches, while Macs and iPads are available on 24- or 36-month terms. Monthly prices start at $17.99 for iPhones, $11.99 for Apple Watches, $24.99 for Macs, and $11.99 for iPads. Applications go through Klarna using a soft credit inquiry, so applying doesn't affect a customer's credit score.
At the end of the lease, customers can upgrade to a newer model with a new lease, buy their existing device with a one-time payment, or return it and leave the program. Lease details and payment schedules are managed through the Klarna app.
Apple is also encouraging trade-ins at signup, which can lower monthly payments, and customers paying with Apple Card earn 3% Daily Cash on their lease payments. Unlike the old iPhone Upgrade Program, AppleCare is no longer bundled in and must be purchased separately.
There are some eligibility restrictions, too. iPhone leases must be activated with AT&T, T-Mobile, or Verizon at checkout, though the device stays unlocked. Applicants must be at least 18, have an Apple Account and a Klarna account in good standing, provide a valid Social Security Number or ITIN, and pass Klarna's approval process. The program is available only in the US, excluding territories, and a handful of devices, including the iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16), and Studio Display, are excluded.
By replacing its in-house financing with a Klarna-backed leasing model, Apple is betting that flexibility and lower monthly payments will win over buyers facing rising hardware prices, and whether that bet pays off may shape the company's purchasing strategy going forward.
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