Apple Upgrade: Monthly Device Leasing Launches and Replaces the iPhone Upgrade Program
A Klarna-backed monthly lease for iPhone, Apple Watch, Mac, and iPad - starting at $11.99 a month. The iPhone Upgrade Program is shutting down.
Apple Upgrade launched July 28. Klarna provides the financing for the new leasing program, which covers iPhone, Apple Watch, Mac, and iPad - monthly payments start as low as $11.99 for Apple Watch and iPad, $17.99 for iPhone, and $24.99 for Mac. Approval takes minutes via a soft credit check that does not affect credit scores. Apple is also retiring the iPhone Upgrade Program and iPhone Payments in the US.
Lease Terms and What Happens at the End
Lease terms vary by device. iPhone and Apple Watch offer 12- or 24-month leases; Mac and iPad offer 24- or 36-month leases. At the end of the term, Klarna customers can swap to the latest model by starting a new lease, buy the device outright, or return it and walk away. Letting the lease expire without a choice converts it to a month-to-month arrangement for up to six months, with higher monthly payments.
What a 24-Month Lease Actually Costs
Apple's fine print makes the math clear. An iPhone 17 Pro 256GB priced at $1,099 costs $31.99 per month on a 24-month lease - $767.76 in total, with the customer owning nothing at the end unless they pay an additional purchase fee. Choosing the 12-month term pushes that to $45.99 per month. Flagship hardware keeps getting more expensive across the board - Google is also raising Pixel 11 prices ahead of its August 12 event, and monthly payment structures are how both companies soften the sticker number.
| Device | Retail price | 24-month lease/mo | 12 or 36-month lease/mo |
|---|---|---|---|
| iPhone 17 Pro 256GB | $1,099 | $31.99 | $45.99 (12-mo) |
| Apple Watch Series 11 GPS 42mm | $399 | $11.99 | $21.99 (12-mo) |
| 11-inch iPad Pro 256GB | $1,199 | $31.99 | $24.99 (36-mo) |
| 14-inch MacBook Pro 16GB | $1,999 | $53.99 | $38.99 (36-mo) |
iPhone Upgrade Program Shuts Down
Apple Upgrade replaces the iPhone Upgrade Program, which Apple ran since 2015. Current members can join Apple Upgrade with a new lease, finance through Apple Card Monthly Installments at 0% APR, buy the device outright, or switch to carrier financing. Klarna takes the lease side. Apple Card Monthly Installments, still available at checkout, handles interest-free financing for those who want to own the device outright. Apple also excludes iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16), and Studio Display from the program - newer and entry-level models are not part of the initial lineup.
Apple controls the upgrade moment now. Rather than letting carriers own the annual iPhone swap, Apple Upgrade keeps the transaction in Apple Stores and on Apple's terms - with Klarna taking the credit risk. Apple is also skipping M6 Pro and Max to fast-track an AI-focused M7 chip for 2027, which means customers who sign 36-month Mac leases today will hit their upgrade window right as the biggest chip change in the Mac lineup in years arrives. Getting customers onto a predictable lease cycle before that hardware shift is probably worth more to Apple than the leasing margin itself.
