Quick Answer
Apple Upgrade is a new US leasing program, launched July 28, 2026 with Klarna, that lets you lease an iPhone, Mac, iPad, or Apple Watch for a monthly fee. iPhones start at $17.99 a month. It replaces the iPhone Upgrade Program, but it is a lease, so you don’t own the device unless you buy it out at the end.
Key Takeaways
- Apple Upgrade is a US leasing program run with Klarna, launched July 28, 2026.
- iPhones start at $17.99 a month, with 12- or 24-month terms; Macs and iPads use 24- or 36-month terms.
- It is a lease, so you don’t own the device unless you pay a one-time purchase fee.
- It replaces the iPhone Upgrade Program and iPhone Payments, and it does not include AppleCare.
- Because Klarna charges no financing fee, buying the device out costs the same as its retail price.
What is Apple Upgrade?
Apple Upgrade is a leasing program that lets US customers pay a monthly fee to use an iPhone, iPad, Mac, or Apple Watch, rather than buying it outright. Apple launched it on July 28, 2026 in partnership with the consumer credit company Klarna, and it is available on Apple.com, the Apple Store app, and in Apple Stores. Apple detailed the program in its official newsroom announcement.
The key word is leasing. Unlike Apple’s older plans, where your payments went toward owning the device, Apple Upgrade is a lease where Klarna keeps ownership until you decide to buy it. It replaces the iPhone Upgrade Program and iPhone Payments, both of which Apple has stopped offering to new customers in the US.
The program arrives as device prices climb across the industry, which we covered in our look at whether iPhone prices will go up. Framed simply, Apple Upgrade is aimed at people who want a newer device with a lower upfront cost and the flexibility to upgrade often.
How does Apple Upgrade work?
Apple Upgrade works like a fixed-term lease with clear choices at the end. You pick an eligible device and a term, pay monthly, and when the lease ends you decide what happens next. For iPhone and Apple Watch, you choose a 12- or 24-month term, while Mac and iPad use 24- or 36-month terms.
Signing up requires a Klarna account and a soft credit inquiry, which does not affect your credit score, and there is no security deposit, according to reporting on the program. A trade-in can lower your monthly payment, applied as a monthly credit, and Apple Card users can earn Daily Cash on payments. AppleCare is not included in the price, unlike the old program, so you add it separately if you want coverage.
At the end of the term, you have three options: upgrade to the newest model and start a new lease, pay a one-time fee to keep the device, or return it and walk away. If you do nothing, the lease converts to a month-to-month arrangement for up to 6 months, which can mean paying more. Apple sends a prepaid box for returns and upgrades.
How much does Apple Upgrade cost?
Apple Upgrade’s monthly cost depends on the device, configuration, and term, but the starting prices are low. An iPhone starts at $17.99 per month, an Apple Watch and iPad each start at $11.99 per month, and a Mac starts at $24.99 per month. Higher-end machines cost much more, with a loaded Mac Studio running over $325 per month.
The important detail is what happens if you buy the device at the end. Because Klarna charges no financing fee, the total you pay to own it equals the retail price. Apple describes the purchase fee as the list price minus the payments you have already made, minus any discounts or trade-in credit, so an iPhone that lists for $1,099 costs $1,099 to buy out, plus tax.
Longer leases have lower monthly payments but you pay for more months before you can buy out. Some products are not eligible, including the iPhone 16, iPhone 16 Plus, Apple Watch SE 3, MacBook Neo, Mac mini, iPad A16, and Studio Display. For context on where device prices are heading, see our explainer on the AI memory shortage and device prices.
Apple Upgrade vs buying: is leasing worth it?
Whether Apple Upgrade is worth it depends mostly on how often you replace your devices. If you upgrade every year or two and like low upfront costs, leasing can fit well, since you pay a small monthly fee and hand the device back for a newer one. If you keep devices for years, buying outright or using an interest-free installment plan is usually cheaper overall, because you stop paying once it is yours.
This is general information, not financial advice, and your own budget and habits matter most. Here is a plain comparison of the two paths.
| Factor | Apple Upgrade (lease) | Buying outright |
|---|---|---|
| Ownership | Klarna owns it unless you buy out | You own it immediately |
| Upfront cost | Low, often just the first month | Full price, or financed |
| Best for | Upgrading every 1 to 2 years | Keeping a device for years |
| AppleCare | Optional add-on, extra cost | Optional, bought separately |
| Long-term cost | Ongoing if you keep leasing | Stops once paid off |
The nuance that makes Apple Upgrade fairer than many leases is the lack of a financing fee, so you are not paying interest to lease. Still, if you lease and keep upgrading, you never build any ownership. Our guide on whether an Apple upgrade is worth it helps you weigh the decision to replace a working device.
What are the downsides to know?
The main downsides are that you don’t own the device, coverage costs extra, and leaving early is expensive. Because it is a lease, you must eventually return the device or pay to keep it, and simply making payments does not make it yours. AppleCare is also no longer bundled in, so protection is an additional monthly charge.
Early termination is the one to watch. If you end the lease before the term is up, Apple says you may face substantial fees, which can approach the remaining balance. Stop here and read the full lease terms, especially the early-termination and end-of-term details, before you sign, since the flexibility comes with rules worth understanding.
There are smaller catches too. You need to create a Klarna account and pass a soft credit check, not every product is eligible, and forgetting to act at the end can roll you into pricier month-to-month payments. None of these is a dealbreaker, but they are the fine print that a low monthly price can hide.
How do you sign up for Apple Upgrade?
You sign up for Apple Upgrade while checking out on an eligible device, and the process takes a few minutes. Back up your current device before you trade it in or return it, so none of your photos or data are lost in the switch. Then follow these steps.
- Choose an eligible iPhone, iPad, Mac, or Apple Watch on Apple.com, the Apple Store app, or in an Apple Store.
- Select Apple Upgrade as your payment option and pick a lease term.
- Create or sign in to a Klarna account and complete the soft credit check.
- Add a trade-in and AppleCare if you want them, which adjusts your monthly cost.
- At the end of the lease, choose to upgrade, buy the device out, or return it.
You manage the lease, billing schedule, and remaining payments in the Klarna app. If you were on the old iPhone Upgrade Program, you can keep paying until your current iPhone is paid off, then switch to Apple Upgrade or another option. For help keeping your current iPhone healthy in the meantime, our guides on fixing an iPhone that won’t charge and using Apple Intelligence are good starting points.
FAQ
Do you own the device with Apple Upgrade?
No, Apple Upgrade is a lease, so Klarna owns the device unless you pay a one-time purchase fee at the end of the term. Making monthly payments alone does not make it yours.
How much does Apple Upgrade cost per month?
Starting prices are $17.99 a month for iPhone, $11.99 for Apple Watch and iPad, and $24.99 for Mac. The exact cost depends on the model, configuration, and lease term.
Does Apple Upgrade charge interest or fees?
Klarna does not charge a financing fee, so buying the device out costs the same as its retail price. However, early termination can bring substantial fees.
Is Apple Upgrade better than buying an iPhone?
It depends on your habits, since leasing suits people who upgrade every year or two, while buying is usually cheaper if you keep a device for years. This is general information, not financial advice.
What happened to the iPhone Upgrade Program?
Apple discontinued the iPhone Upgrade Program and iPhone Payments for new US customers, replacing them with Apple Upgrade. Existing participants can keep paying until their current iPhone is paid off.