Last week, rumors swirled that Apple was set to revamp its iPhone Upgrade Program, replacing it with a fresh initiative called Apple Upgrade. Now, that speculation has become reality. Apple has officially launched Apple Upgrade, a new leasing program powered by Klarna. This service lets you lease a range of Apple devices, including iPhones, Apple Watches, iPads, and Macs. You can access it through the Apple Store online, the Apple Store app, or at physical Apple Stores across the United States.
What Is Apple Upgrade?
Apple Upgrade is a leasing program designed to make Apple devices more accessible without requiring a full upfront payment. Instead of buying a device outright or financing it with a loan, you essentially rent it for a set period. At the end of the lease, you can either return the device, upgrade to a new model, or purchase it outright. This flexibility is a key draw for users who want the latest technology without the long-term commitment of ownership.
How It Works
The program is managed by Klarna, a well-known buy-now-pay-later provider. When you choose Apple Upgrade, you select a lease term that fits your device and budget. For iPhones and Apple Watches, you have two options: a 12-month lease or a 24-month lease. For Macs and iPads, the terms are longer: 24 months or 36 months. Monthly payments are calculated based on the device’s retail price, minus its estimated residual value at the end of the lease. This means you pay for the device’s depreciation during your lease period, not its full cost.
Pricing and Availability
Pricing varies by device. For example, the iPhone 17e starts at just $17.99 per month, while the iPhone 17 begins at $22.99 per month. Higher-end models like the iPhone 17 Pro or Pro Max will naturally cost more. Apple Watches, iPads, and Macs follow a similar structure, with monthly payments tailored to their retail prices and lease terms. The program is currently available only in the United States, but Apple may expand it to other regions in the future.
Benefits Over Traditional Financing
Compared to the old iPhone Upgrade Program, which required a 24-month loan with an option to upgrade after 12 months, Apple Upgrade offers more flexibility. You can choose shorter or longer leases, and the monthly payments are often lower because you’re not paying off the full device cost. Additionally, Klarna handles the credit checks and payments, streamlining the process. For those who frequently upgrade, the 12-month lease on iPhones is particularly appealing, as it lets you get a new model every year without any hassle.
Who Should Consider Apple Upgrade?
This program is ideal for users who want to avoid large upfront costs and prefer predictable monthly payments. It’s also great for tech enthusiasts who like having the latest devices without the burden of selling or trading in old ones. However, it’s worth noting that you don’t own the device until you exercise the purchase option at the end of the lease. If you’re someone who keeps devices for years, traditional financing or outright purchase might be more cost-effective.
Potential Drawbacks
One downside is that you’re locked into a lease contract. If your needs change, early termination fees may apply. Also, since the program is new, it’s unclear how Apple and Klarna handle device damage or loss during the lease. You’ll likely need AppleCare+ to cover accidental damage, which adds to the monthly cost. Always read the terms carefully before signing up.
How to Get Started
To enroll, visit the Apple Store website or app, select the device you want, and choose Apple Upgrade at checkout. You’ll go through a quick credit check with Klarna, and if approved, you can finalize your lease. The device ships or is available for in-store pickup as usual. Your monthly payments will be automatically deducted from your chosen payment method.
Comparison to the Old Program
The old iPhone Upgrade Program was essentially a loan with a trade-in option after 12 months. Apple Upgrade is a true lease, which means you never take out a loan for the full device price. This distinction lowers your monthly payments and removes the need to worry about resale value. However, you also lose the ability to own the device outright unless you pay the residual value at the end.
Final Thoughts
Apple Upgrade represents a significant shift in how Apple sells its products. By partnering with Klarna, Apple is tapping into the growing demand for flexible payment solutions. Whether you’re a loyal Apple fan or just curious about the latest gadgets, this program offers a low-commitment way to experience premium devices. As always, weigh the pros and cons based on your personal usage and financial situation.
