Overview
- Apple launched Apple Upgrade on July 28 as a U.S. leasing program that lets customers lease iPhone, iPad, Mac, or Apple Watch with options to upgrade, return, or pay to keep the device.
- Leases run 12 or 24 months for iPhone and Apple Watch and 24 or 36 months for iPad and Mac with advertised entry prices such as $17.99 per month for iPhone and $11.99 per month for Apple Watch.
- Apple outsourced the financing to Klarna after winding down prior in‑house efforts like Apple Pay Later so Apple manages the customer experience while Klarna handles the lending and credit checks.
- Analysts say the program aims to raise retention, protect margins, and feed Apple’s refurbished-device pipeline but questions remain about total consumer cost, buyout calculations, early‑termination or damage fees, and long‑term upgrade behavior.
- The move follows wider industry trends of longer replacement cycles and growing subscription offers from other firms, and it signals how hardware makers are shifting to recurring revenue models to offset slower device turnover.