Apple has officially shuttered its legacy iPhone Upgrade Program and launched Apple Upgrade an all-inclusive hardware subscription and leasing ecosystem powered by Buy Now, Pay Later (BNPL) giant Klarna.
You are no longer just buying an iPhone or a Mac; you are renting entry into Apple’s wall-to-wall hardware engine.
How the ‘Apple Upgrade’ Lease Works
Instead of taking on direct financial debt, Apple is outsourcing consumer loans to Klarna. A soft credit check gets you in the door without dinging your credit score upfront.
- iPhones & Apple Watches: 24-month lease terms.
- Macs & iPads: 36-month lease terms.
- Starting Prices:
- iPhone 17e: $17.99 / month
- iPhone 17: $22.99 / month
- iPhone Air: $28.99 / month
- iPhone 17 Pro / Pro Max: $31.99 to $34.99 / month
- MacBook Air / Pro: Starts at $24.99 / month
What Happens When Your Lease Ends?
When your 24 or 36 months are up, Apple gives you three choices:
- Upgrade: Hand back the device, start a new lease, and walk out with the latest model.
- Buy It Out: Pay the remaining balance difference (capped at standard retail price) to keep the device.
- Return It: Hand the hardware back and end your subscription.
The Catch: Read the Fine Print
While low monthly payments look tempting, Apple built several key trade-offs into the new model:
- No Free AppleCare+: Unlike the old iPhone Upgrade Program, protection plans are no longer bundled. Accidental damage protection is an additional monthly add-on.
- Klarna Risk: Missed payments roll over, but late fees and account flags apply if you slip behind on payments.
- Excluded Entry-Level Gear: Base iPads, standard Apple Watch SEs, and budget Mac models aren’t eligible for leasing.
If you already swap your phone every 12 to 24 months, Apple Upgrade offers low predictable cash flow demands and seamless carrier integration.
However, if you prefer keeping your gear for three to four years, outright ownership or standard financing remains the smarter financial play. Apple isn’t just selling tech anymore it’s building a permanent monthly utility bill for your pocket.
