After rumors, Apple today announced Apple Upgrade, a new product leasing program powered by Klarna for iPhone, Apple Watch, Mac, and iPad. The service is available across the Apple Store online, through the Apple Store app, and at Apple Store physical locations in the United States.
The program introduces flexible leasing terms across several product categories:
- iPhone & Apple Watch: 12- and 24-month leasing options.
- Mac & iPad: 24- and 36-month leasing options.
Starting monthly rates for the program are set at $17.99 for iPhone, $11.99 for Apple Watch, $24.99 for Mac, and $11.99 for iPad. Upon initial enrollment, customers can apply trade-in value from an existing device via Apple Trade In to reduce their monthly payment amounts.
Additionally, customers paying via Apple Card earn 3 percent Daily Cash back on lease payments.
Enrollment and Shopping Process
The enrollment process, developed jointly by Apple and Klarna, provides prospective buyers with details regarding available leasing options prior to sign-up.
Applicants can complete the application in a few minutes online or in-store. Approval is managed by Klarna and involves a soft credit inquiry, which does not affect the applicant’s credit score.
Once approved, customers complete their purchase through standard retail channels, with options for immediate in-store fulfillment, home delivery, or local pickup. Customers enrolled in Apple Upgrade retain access to Apple services, including:
- Personal Setup: Guided assistance to configure new devices.
- Today at Apple: Free educational sessions covering device features and usage.
End-of-Term Options and Account Management
At the end of a lease term, participants have three choices:
- Upgrade to a newer model.
- Purchase the current device via a one-time payment.
- Return the device and exit the program.
Lease details, including billing schedules and remaining payment balances, are tracked within the Klarna app. Customers may also add an optional AppleCare subscription to cover hardware protection during the lease term.
Transition from Existing Programs
With the launch of Apple Upgrade, Apple is discontinuing the iPhone Upgrade Program and iPhone Payments options in the United States.
Customers currently participating in the iPhone Upgrade Program who become eligible to change devices will have the option to transition to Apple Upgrade, utilize Apple Card Monthly Installments, purchase devices outright, or opt for carrier-provided financing options.