Apple’s New Leasing Program Replaces iPhone Upgrade Plan

Apple has introduced a new leasing program called Apple Upgrade, backed by Klarna. This program covers iPhones, iPads, Macs, and Apple Watches, marking the end of new enrollments in the longstanding iPhone Upgrade Program. Customers now have more options to upgrade their devices. However, they need to consider whether this new lease will result in cost savings.

Understanding Apple Upgrade

Apple Upgrade is a leasing program available through Klarna. It allows customers to pay a monthly fee for a variety of Apple products, including iPhones, iPads, Macs, and Apple Watches. Depending on the product, customers can select different lease terms. At the end of the lease, they can choose to upgrade to a newer model, purchase the device outright, or return it and exit the program.

The program is accessible online, via the Apple Store app, and in Apple retail locations across the U.S. Applicants undergo a soft credit check that does not impact their credit score.

This launch coincides with a transition period at Apple. In April, Apple announced that Tim Cook would transition to executive chairman, with John Ternus poised to become CEO by September 1, 2026. Apple Upgrade is one of the first consumer-focused initiatives introduced during this leadership change.

Comparing Apple Upgrade to Previous iPhone Upgrade Program

For frequent iPhone upgraders, the monthly cost is a crucial factor. Apple’s pricing indicates that the Apple Upgrade lease costs around $11 less per month for the iPhone 17 Pro Max lineup compared to the old iPhone Upgrade Program.

Reasons for Lower Advertised Prices

The lower monthly price partly stems from the fact that the previous iPhone Upgrade Program included AppleCare+ with Theft and Loss in the monthly fee. Existing program members retain this coverage until their agreements are complete.

With Apple Upgrade, the default package doesn’t include AppleCare+, which must be purchased separately. Reports indicate that AppleCare+ with Theft and Loss for current Pro-level iPhones costs about $13.99 per month, or $139.99 annually. Therefore, the $134 annual saving advertised nearly vanishes if customers buy this coverage separately.

End of Lease Options

Ownership conditions are another critical difference. Under the old program, customers financed their devices over 24 months and owned them after completing all payments. Apple confirms that current members can finish their payments to own their devices.

With Apple Upgrade, customers lease devices through Klarna. When the lease ends, they can buy the product, return it, or begin a new lease. Apple also offers the option to reduce payments by trading in existing devices when enrolling and provides 3 percent Daily Cash for payments made with Apple Card.

Apple’s Perspective

Apple describes the new program as a path to greater flexibility, extending upgrade-style payments from the iPhone to Macs, iPads, and Apple Watches. Lease prices reportedly start at $17.99 for iPhones, $11.99 for Apple Watches, $24.99 for Macs, and $11.99 for iPads. Newsweek has reached out to Apple for comments and is awaiting a reply.

Conclusion

For individuals who annually upgrade their iPhones, the Apple Upgrade lease appears to save about $134 each year based on advertised monthly rates. However, this saving comes with a caveat. The previous program included AppleCare+ with Theft and Loss, whereas Apple Upgrade does not. The cost difference essentially disappears when this coverage is added back into the equation. The significant shift involves moving from a financing program that bundled protection and led to ownership into a standard leasing model focused on flexibility and ongoing upgrades.