Apple will introduce a new leasing program on July 28, marking a shift in how customers acquire hardware. The initiative, known as Apple Upgrade, will be available through Apple’s retail and online stores in the United States. This program replaces new sign-ups for the existing iPhone Upgrade Program, though customers currently enrolled in the older financing plan will be permitted to remain in their current agreements for the time being.
The new program is backed by the buy-now, pay-later service Klarna and requires a soft credit check for enrollment. Unlike the previous iPhone-centric model, the new offering expands to include iPads, Macs, and Apple Watches. Lease terms are structured based on the device category, with 24-month agreements for iPhones and Apple Watches, and 36-month terms for Macs and iPads.
Subscribers will have several options at the end of their lease terms, including returning the device, upgrading to a newer model, or paying a fee to retain ownership of the hardware. Apple intends to market the program as a way to achieve lower monthly payments compared to traditional financing options, though the structure functions more like a vehicle lease where payments cover depreciation rather than the full value of the device.
Several product lines are excluded from the new leasing program, including the base-model iPad, the iPhone 16, the Apple Watch SE, and the MacBook Neo. Additionally, the program is not available for business or education purchases. Unlike the previous iPhone Upgrade Program, AppleCare+ coverage is not bundled into the monthly payments and must be purchased separately by the user.