Apple has officially replaced its long-running iPhone Upgrade Program with Apple Upgrade, a new leasing service launched in partnership with Klarna that allows customers to lease eligible Apple devices for lower monthly payments.
The programme covers select iPhones, iPads, Macs and Apple Watches, but customers should understand several important conditions before signing up.
Available only in the US
Apple Upgrade is currently available only in the United States, with no announcement regarding international expansion.
Leased iPhones are unlocked
Although customers must choose AT&T, Verizon or T-Mobile during checkout, leased iPhones are unlocked and can later be used with another compatible carrier or a second eSIM.
Requires postpaid mobile plans
Customers must already have a postpaid wireless plan with one of Apple's supported carriers. Prepaid plans are not eligible.
You don't automatically own the device
Unlike financing, leasing does not transfer ownership automatically.
At the end of the lease, customers must either:
- Pay the remaining balance to own the device, or
- Return it and upgrade or end the lease.
Missing payments won't disable your iPhone
Apple clarified that missing lease payments will not affect access to apps or iPhone functionality.
Instead, unpaid instalments are rolled into the following month's payment without late fees.
Three missed payments end the lease
If three consecutive payments are missed, Klarna can terminate the lease and demand immediate repayment of the remaining balance.
Returning the device reduces the outstanding amount, while failing to return it may result in debt collection and possible credit score damage.
AppleCare+ is no longer included
Unlike the discontinued iPhone Upgrade Program, AppleCare+ is not included with Apple Upgrade.
Customers must purchase it separately if they want accidental damage protection.
Customers pay for damage
Returned devices are inspected for damage.
Without AppleCare+, customers must cover repair costs before returning leased devices.
Apple Card financing still available
Apple Card holders can still choose Apple's interest-free monthly instalment option, which allows customers to own their devices outright rather than lease them.
Some Apple products aren't eligible
Apple Upgrade is not available for several products, including:
- iPhone 16
- iPhone 16 Plus
- Apple Watch SE
- MacBook Neo
- Mac mini
- A16 iPad
- Studio Display
Education pricing excluded
Apple's education discounts cannot be combined with Apple Upgrade.
Refurbished devices not supported
Only new eligible Apple products qualify under the leasing programme.
Leases can end early
Customers may terminate a lease early by paying the remaining balance before returning the device.
They can also buy out the lease at any time without penalty.
Soft credit check only
Applying for Apple Upgrade requires only a soft credit check, meaning the application itself does not affect a customer's credit score.
Trade-ins supported
Customers can trade in an older iPhone when starting a lease.
Rather than receiving an immediate discount, the trade-in value is spread across monthly lease payments.
However, devices returned during an upgrade cannot be traded in again.
Payment restrictions apply
Klarna does not accept some major credit cards, including certain cards issued by American Express, Chase and Capital One, although other cards—including Apple Card—can be used for lease payments.
Apple says Apple Upgrade is designed to provide more flexible monthly pricing, but customers should carefully review ownership terms, payment conditions and eligibility requirements before choosing the leasing option.
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