Apple is set to introduce its new Apple Upgrade program on July 28, bringing a significant change to how customers purchase its devices. Instead of the traditional financing model, the company is reportedly moving toward a lease-based system that covers multiple Apple products.
The new program is expected to replace new enrollments in the existing iPhone Upgrade Program and will be supported by payment provider Klarna.
Lease Plans for Multiple Apple Devices
Unlike the previous program, Apple Upgrade will reportedly include more than just iPhones.
Customers will be able to lease:
- iPhone
- iPad
- Mac
- Apple Watch
Lease terms are expected to vary depending on the device:
- 24 months for iPhones and Apple Watches
- 36 months for Macs and iPads
The program is expected to launch first in the United States through Apple's online store and retail locations.
How the Program Works
Customers will make fixed monthly payments throughout the lease period.
During or after the agreement, users may have several options, including:
- Paying off the remaining balance early
- Upgrading to a newer Apple device
- Returning the device when the lease ends
- Purchasing the device to keep it permanently
A soft credit check through Klarna will reportedly be required before joining the program.
What's Different From the Current Program?
Apple Upgrade is expected to replace new sign-ups for the long-running iPhone Upgrade Program, although existing customers can continue using their current financing plans.
Reports also suggest that AppleCare+ may no longer be included automatically, which would be a notable difference from the previous offering.
In addition, some products—including the base iPad, iPhone 16, Apple Watch SE, MacBook Neo, and purchases made through business or education programs—are reportedly excluded.
Why Apple Is Making This Change
The new leasing program arrives shortly after Apple increased prices across several products and services.
By spreading the cost over two or three years, Apple could make its premium devices more affordable while encouraging customers to upgrade more frequently.
The strategy may also help Apple strengthen long-term customer loyalty and generate more predictable recurring revenue.
Will You Actually Own Your Device?
One of the biggest questions surrounding Apple Upgrade is ownership.
Unlike a traditional installment plan, a lease typically means customers are paying for the device's use rather than purchasing it outright.
When the lease expires, users may need to return the device or pay an additional amount to become the owner.
For customers who regularly upgrade to the latest iPhone or Mac, the program could offer greater flexibility. However, those who prefer to keep their devices for many years may find a standard financing plan to be the better value.
What to Expect
Apple has not yet officially announced every detail of the program, but if the reported information is accurate, Apple Upgrade could represent one of the company's biggest changes to device financing in years.
More information is expected once the program officially launches.
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