Apple Upgrade Leasing Program: How It Works and Who It Fits

The Apple Upgrade leasing program is now available in the United States, letting eligible customers lease an iPhone, iPad, Mac, or Apple Watch through Klarna. The lower monthly payment is the main hook, but the device does not automatically become yours.

At the end of the lease, you can return the device, start a new lease to upgrade, or pay a separate purchase amount to keep it. AppleCare costs extra, and leaving the lease early can mean paying every remaining monthly payment. For gamers, the decision comes down to how often you upgrade and whether owning your hardware matters. Apple announced the program⁠ on July 28, 2026. (Apple⁠)

Apple Upgrade launched July 28 in the United States

Apple Upgrade launched through the Apple Store website, Apple Store app, and physical Apple Store locations across the United States. Klarna handles the leases, applications, monthly payments, and account management. (Apple⁠)

The program arrives shortly after Apple’s recent Mac and iPad price increases⁠. It gives shoppers a lower monthly option for expensive hardware, but that lower payment comes from leasing the device instead of financing the full purchase price. (The Verge⁠)

Applications use a soft credit check that Apple says will not affect your credit score. Customers must be at least 18 years old or the legal age in their state, live in the United States outside its territories, and provide a Social Security number and valid payment card. (Apple⁠)

How the Apple Upgrade leasing program works

Apple Upgrade offers different terms based on the type of device:

Device	Lease options	Starting monthly price
iPhone	12 or 24 months	$17.99
Apple Watch	12 or 24 months	$11.99
iPad	24 or 36 months	$11.99
Mac	24 or 36 months	$24.99

These are starting prices for eligible entry-level models. More storage, larger screens, cellular connections, and premium models raise the monthly payment. Apple’s program page lists an iPhone 17 Pro from $31.99 per month, an iPad Pro from $24.99, and a MacBook Pro from $38.99 using the longer available terms.

At the displayed starting rates, 24 monthly payments for an iPhone 17e total $431.76 before taxes, AppleCare, damage charges, or other fees. A MacBook Air leased at $24.99 for 36 months totals $899.64 in scheduled lease payments. You still do not own either device after making those payments.

Trading in a device lowers only the first lease

You can trade in an eligible device when first joining Apple Upgrade. Klarna spreads that trade-in value across your initial lease to lower the monthly payment.

That credit does not carry into the next lease, and Apple says you cannot trade in another device when upgrading through the program. If the original trade-in arrives damaged or does not match its quoted condition, Klarna can raise your monthly payment.

Upgrading starts another lease

Apple will notify you when you can upgrade without an early upgrade fee. To upgrade, you must apply for a new lease, receive credit approval again, and return the current device in good working condition.

You can return it through a prepaid kit or at an Apple Store. Upgrading before you become eligible is possible, but Apple says an early upgrade fee may apply.

You do not own the device at the end

Apple Upgrade is different from buying a device with monthly installments. Your payments cover the right to use the hardware during the lease.

When the original term ends, you have three main choices:

• Return the device and leave Apple Upgrade
• Return it and apply for a new lease on another device
• Pay the purchase option amount through Klarna to keep it

Apple gives you six months after the term ends to make that decision. Your normal monthly payments continue during those six months. If you do nothing, Klarna will eventually charge the purchase option amount and transfer ownership to you.

The purchase option is based on the device’s original list price minus the lease payments, remaining discounts, and eligible trade-in credit already applied. Apple says customers who return or upgrade normally will pay less than the original list price, excluding taxes and damage fees, because they are not buying the device.

AppleCare costs extra

The old iPhone Upgrade Program bundled AppleCare coverage. Apple Upgrade does not.

AppleCare, AppleCare+ with Theft and Loss, or AppleCare One must be purchased separately. Apple says customers have up to 60 days after enrollment to add coverage.

This matters because leased devices must be returned in good working condition. Damage can lead to an additional fee, while a lost or stolen device without theft coverage may require paying the early termination amount or purchasing the device outright. Monthly lease charges continue until one of those options is completed.

Early cancellation can get expensive

Apple provides a 14-day return window after you receive the device. Returning it within that period cancels the lease after Apple receives the hardware.

After 14 days, ending the lease early requires an early termination payment equal to all unpaid monthly lease payments through the end of the original term, including applicable taxes and fees. This means Apple Upgrade is not a flexible month-to-month subscription that you can cancel whenever you stop using the device.

Other limits include:

• No optional down payment
• Separate applications for every leased device
• Apple Pay and PayPal are not accepted for lease payments
• Some cards and issuers, including American Express, Chase, and Capital One, may not be accepted by Klarna
• iPhones must connect to AT&T, T-Mobile, or Verizon during enrollment
• Apple Card payments can earn 3% Daily Cash for eligible customers

Apple Upgrade replaces the iPhone Upgrade Program

Apple is no longer accepting new enrollments for the original iPhone Upgrade Program or iPhone Payments in the United States.

The older program focused only on iPhone, included AppleCare coverage, and allowed eligible customers to upgrade after making 12 payments. Apple Upgrade covers more product categories and offers lower starting payments, but AppleCare is separate and the hardware is treated as a lease.

Current iPhone Upgrade Program members can continue making their existing payments. When eligible for another phone, they can move to Apple Upgrade, use Apple Card Monthly Installments, choose carrier financing, or buy the device outright.

Which Apple devices can be leased

Apple Upgrade covers most current iPhone models, plus selected Macs, iPads, and Apple Watches.

Eligible product groups include:

• iPhone models other than iPhone 16
• MacBook Air and MacBook Pro
• iMac and Mac Studio
• iPad mini, iPad Air, and iPad Pro
• Apple Watch Series 11 and Apple Watch Ultra models

Apple lists the iPhone 16, Apple Watch SE, MacBook Neo, Mac mini, base iPad with A16, and Studio Display among the products that are not available through Apple Upgrade. Availability can also change as Apple updates its hardware lineup.

Apple Upgrade vs buying or financing

Option	Best fit	Main limitation
Apple Upgrade	Gamers who upgrade regularly and want lower payments	You must return the device or pay a buyout
Monthly financing	Gamers who want ownership without paying upfront	Monthly payments are usually higher
Buying outright	Gamers who keep devices for several years	Highest immediate cost
Carrier promotion	Gamers with an eligible plan and trade-in	Credits may lock you to the carrier

Apple Upgrade can fit someone who replaces an iPhone every year or two and does not care about reselling the old one. It may also help someone who wants a newer Mac or iPad for gaming, streaming, school, or content creation without paying the full price upfront.

Buying or financing may fit better when you keep devices for several years. Once you own the hardware, you can continue using it without payments, sell it privately, give it to someone else, or trade it in wherever you find the best offer.

Is Apple Upgrade worth it for gamers?

Apple Upgrade is mainly paying for access and regular upgrades, not long-term ownership.

It may fit you when:

• You replace your iPhone or Apple Watch often
• You prefer a lower monthly bill
• You keep your devices protected and in good condition
• You are comfortable returning hardware
• You do not mind applying for a new lease when upgrading

Buying or financing may be the stronger fit when:

• You keep phones, Macs, or iPads for several years
• You want AppleCare included in the same payment
• You want to use any carrier or payment card
• You want the freedom to sell the device
• You do not want return inspections, damage charges, or lease deadlines

The monthly number looks attractive, but the most important question is what you want after the payments end. Would you rather pay less each month and return your device, or pay more and own it?