Overview
- Apple put Apple Upgrade live in the United States this week, replacing the iPhone Upgrade Program and iPhone Payments and letting customers lease iPhones, iPads, Macs and Watches through the Apple Store online, app, and retail locations.
- The program, run with Klarna, offers 12- and 24-month leases for iPhone and Apple Watch and 24- and 36-month leases for Mac and iPad with advertised starting monthly rates as low as $17.99 for iPhone and $11.99 for iPad or Watch.
- Enrollment requires a soft credit check that does not affect scores, Klarna typically approves in minutes so in-store buyers can take devices home the same day, and customers can lower payments with trade‑ins or earn 3% Daily Cash if they pay with an Apple Card.
- Leases mean customers do not own devices during the term; end‑of‑term options include upgrading, returning the device, or buying it by paying the remaining balance, and Apple allows AppleCare as an add‑on for damage protection.
- Consumer advocates and reporters warn of risks: three missed payments can terminate a lease and trigger demands for the full balance or collections, Apple may charge for damage or early exits, and analysts note leasing can cost more over time despite lower monthly bills and shifts financing risk to Klarna.