Apple is reportedly preparing to introduce a new device leasing program called Apple Upgrade, according to Bloomberg’s Mark Gurman. The program is expected to offer a subscription-style payment model for select Apple devices.
Apple Upgrade will support most iPhone, Mac, iPad and Apple Watch models, with Klarna Group serving as the financial backer. Customers will reportedly make monthly payments and can pay off the device early, upgrade to a new model before the lease ends, keep the device after the lease period or return it at the end of the term. Some transactions may involve additional fees.
The reported lease periods are:
- iPhone and Apple Watch: 24 months
- Mac and iPad: 36 months
Users will need approval through a soft credit check before joining the program.
Apple Upgrade to replace existing financing options
Apple reportedly plans to discontinue new enrollments for its current iPhone Upgrade Program and standard financing options after introducing the new service. Unlike the existing iPhone Upgrade Program, Apple Upgrade will reportedly not include AppleCare.
The reported exclusions include:
- Apple Watch SE
- Entry-level iPad
- iPhone 16
- MacBook Neo
- Business and education purchases
Apple had previously explored an in-house iPhone and hardware subscription program before canceling the plan in 2024. By partnering with Klarna, Apple can offer the leasing option without taking on direct financial responsibility.
Availability
Apple Upgrade is expected to launch on July 28, initially in the US, through Apple’s physical retail stores and online store. It is not explicitly clear how the transition to Apple Upgrade will impact existing iPhone Upgrade Program members or whether they will be moved to the new leasing program.