Overview
- Multiple reports say Apple plans to launch the Apple Upgrade leasing program in the U.S. on Tuesday, July 28, and will stop accepting new sign-ups to the existing iPhone Upgrade Program the same day.
- The program is reported to be financed by buy‑now‑pay‑later firm Klarna, replacing the Citizens Bank backing of the older iPhone Upgrade Program and moving credit risk off Apple’s balance sheet.
- Under the reported terms, iPhones and Apple Watches would carry 24‑month leases and iPads and Macs 36‑month leases, with options to return, upgrade, pay to keep the device, or pay off early.
- Reports say Apple Upgrade will not bundle AppleCare+ into monthly payments and that some lower‑priced models (examples cited include the Apple Watch SE, entry iPad, iPhone 16 and MacBook Neo) may be ineligible, and an iOS 27 beta code has been reported to suggest possible device restrictions for delinquent lessees though that feature is unconfirmed.
- The program is framed as a response to higher hardware prices that makes lower monthly payments more attractive, and it could broaden subscription access to devices while raising questions about total lifetime cost, damage or upgrade fees, BNPL risks and potential regulatory scrutiny.