Overview
- Apple announced Tuesday that it has launched Apple Upgrade in the United States, a Klarna-backed lease program that replaces the iPhone Upgrade Program and iPhone Payments.
- Leases run 12 or 24 months for iPhone and Apple Watch and 24 or 36 months for Mac and iPad, with advertised starting payments as low as $17.99 for some iPhones, $11.99 for some iPads and Watches, and $24.99 for some Macs.
- Applicants undergo a soft credit check through Klarna, can apply Apple Trade In credits to cut monthly payments, and earn 3% Daily Cash when paying lease bills with an Apple Card.
- At lease end customers may return the device, pay a one-time amount to own it, or take a new lease; if no action is taken the plan converts to month-to-month then eventually charges the purchase amount leaving customers without ownership unless they pay.
- The program excludes some models and channels, does not include AppleCare by default, lets Klarna assess damage fees and handle collections after missed payments, and signals a broader retail shift as Apple responds to rising component costs.