Apple just killed the iPhone Upgrade Program. In its place comes Apple Upgrade, a new leasing plan built with Klarna that lets you get an iPhone, Apple Watch, Mac, or iPad with monthly payments that actually look reasonable on paper.
What it costs and how it works
As per the Apple Newsroom, leases start at $17.99 per month for iPhone, $11.99 for Apple Watch, $11.99 for iPad, and $24.99 for Mac. You pick a 12- or 24-month term for iPhone and Apple Watch, or 24- or 36-month for Mac and iPad. Trade in your current device through Apple Trade In and you can push that monthly number even lower. Pay with Apple Card and you get 3% Daily Cash back on every payment.
The application is quick, done in minutes online or in-store, and uses a soft credit check so your score stays intact. Once approved, in-store shoppers walk out with their device the same day.
What happens when the lease ends
At the end of your term you have three options: upgrade to the latest model, buy the device outright, or just return it and walk away. You manage everything through the Klarna app, including your billing schedule and remaining payments. Add an AppleCare subscription and the return and upgrade process gets even smoother.
Who this affects right now
If you’re currently on the iPhone Upgrade Program, Apple will phase that out. When you’re eligible to upgrade, you’ll choose between Apple Upgrade, Apple Card Monthly Installments, buying outright, or carrier financing. So the old program isn’t just changing, it’s gone.
Is a Klarna-backed lease the best way to buy an iPhone? That depends on your situation. But Apple offering flexible monthly options across its full hardware lineup is a big shift worth paying attention to.