Apple has launched Apple Upgrade, a Klarna backed leasing program.

Apple has launched a new leasing program called Apple Upgrade, giving U.S. customers a way to get a new iPhone, iPad, Mac, or Apple Watch through low monthly payments instead of paying full price at checkout. The program went live on July 28, 2026, and is provided through a partnership with buy now, pay later company Klarna.

Apple Upgrade arrives weeks after Apple raised prices across most of its lineup, and it's being positioned as the primary path forward for anyone who was previously enrolled in the iPhone Upgrade Program, which Apple says is winding down.

How Apple Upgrade Works

Customers choose a product, pick a lease term, and make monthly payments through Klarna rather than buying the device outright.

According to Apple, the lease comes with no down payment, no security deposit, and no interest or hidden fees. The only ongoing cost is the monthly payment itself, plus a possible damage fee if the device isn't returned in good condition at the end of the term.

Signing up requires a soft credit check, which Apple says will not affect a customer's credit score. Applicants need to provide their legal name, date of birth, phone number, email, billing address, and Social Security number, along with an eligible, non prepaid credit or debit card. Customers must be U.S. residents at least 18 years old, and payments are managed through the Klarna app rather than through Apple directly. AppleCare and any accessories that aren't financed are still billed separately by Apple.

Anyone leasing an iPhone through Apple Upgrade also has to select a carrier, AT&T, T-Mobile, or Verizon, at signup, though prepaid plans aren't accepted.

Apple notes that a leased iPhone ships unlocked regardless, so switching carriers later is still possible.

Eligible Products and Lease Terms

Lease lengths vary by product category:

• iPhone and Apple Watch: 12 or 24 month terms
• iPad and Mac: 24 or 36 month terms

Nearly every current product line is included. That covers all iPhone models (except iPhone 16), the MacBook Air, MacBook Pro, iMac, and Mac Studio lineups, iPad Pro, iPad Air, and iPad mini, and Apple Watch Series 11 and Apple Watch Ultra 3, including the Hermès versions of both watches.

Customers can also apply a trade in at signup to lower their monthly payment for the length of that initial lease, though the discount doesn't carry over if they upgrade again later.

What It Costs Each Month

Pricing varies by device, storage, and lease length. Here's the monthly breakdown across each product category, based on base configurations with no trade in applied, current as of July 28, 2026. (images from @mweinbach )

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All figures exclude tax, trade in credit, and AppleCare, and reflect the lowest priced eligible configuration for each device.

Buying Out at the End of a Lease

At the end of a lease term, Apple Upgrade customers have three options,

• Upgrade to a new device and return the current one
• Leave the program and return the device
• Buy the device outright with a one time payment through Klarna.

Customers get six months to decide, and if no choice is made, Klarna automatically charges the purchase option fee to buy the device.

Apple says the buyout math is designed so customers never pay more than a device's original list price if they choose to purchase it.

9to5Mac's Ryan Christoffel laid out the math using the iPhone 17 Pro as an example.

At $1,099, a customer on the 24 month, $31.99 monthly plan would pay around $770 over the lease term, leaving a buyout of roughly $330, for a combined total in line with the phone's list price. Christoffel argues that structure effectively makes Apple Upgrade an interest free way to pay for a device over time, provided the customer eventually buys it rather than repeatedly leasing a new one every cycle, which would cost more in the long run.

The iPhone Upgrade Program Is Going Away

Apple Upgrade appears to be the direct successor to the iPhone Upgrade Program, which combined an iPhone purchase with AppleCare+ and carrier financing.

Apple's Upgrade page tells current iPhone Upgrade Program members that the older program "is coming to an end" and points them to a migration page to see their options for moving to the new one. Apple hasn't given a firm shutdown date for the legacy program.