Overview
- Apple launched the Apple Upgrade leasing program on Tuesday, replacing its U.S. iPhone Upgrade Program with Klarna‑backed leases for iPhone, iPad, Mac and Apple Watch.
- Lease lengths are fixed by device type with iPhone and Apple Watch available for 12‑ or 24‑month terms and Macs and iPads for 24‑ or 36‑month terms, with starting monthly prices as low as $17.99 for some iPhones and $24.99 for some Macs.
- Klarna performs soft credit checks, manages approvals and collects lease payments through its app, and customers can lower monthly fees by applying Apple Trade In credits and earn 3% Daily Cash when paying with Apple Card.
- The program does not include AppleCare by default, requires iPhone leases to be activated on AT&T, Verizon or T‑Mobile plans, and imposes clear rules for damage charges, three consecutive missed payments and early termination or buyout at lease end.
- Apple framed the move as a way to ease higher sticker prices driven by rising component costs while shifting financing off its balance sheet, a change that could alter upgrade habits and draw regulatory attention to lease and buy‑now‑pay‑later products.