Apple’s new Apple Upgrade program lets you lease iPhone, iPad, Mac, and Apple Watch through Klarna starting at $17.99/month, replacing iPhone Upgrade Program.
Apple has launched a new U.S. leasing program for iPhone, iPad, Mac, and Apple Watch in partnership with buy-now-pay-later company Klarna, replacing the company’s previous iPhone Upgrade Program and iPhone Payments offering.
The program, called Apple Upgrade, went live on July 28, 2026, for purchases made online and in Apple retail stores. It lets customers lease a device on a monthly basis rather than buying it outright, with lower starting prices than the program it replaces.
Pricing
Base monthly prices start at:
- iPhone: $17.99/month
- Apple Watch: $11.99/month
- iPad: $11.99/month
- Mac: $24.99/month
Actual payments vary by device, storage, and lease length, and are reduced further when a customer trades in an existing device. Apple has published sample pricing (before tax and trade-in credits):
- 256GB iPhone 17 Pro ($1,099): $45.99/month on a 12-month lease, or $31.99/month on a 24-month lease
- 42mm Apple Watch Series 11 ($399): $21.99/month on a 12-month lease, or $11.99/month on a 24-month lease
- 256GB iPad Pro ($1,199): $31.99/month on a 24-month lease, or $24.99/month on a 36-month lease
- 16GB 14-inch MacBook Pro ($1,999): $53.99/month on a 24-month lease, or $38.99/month on a 36-month lease
iPhones and Apple Watches can be leased for 12 or 24 months; Macs and iPads for 24 or 36 months. AppleCare+ is optional and not bundled into the lease price, though customers can add AppleCare+ or AppleCare One separately.
How It Works
Customers choose a lease term at checkout and undergo a soft credit check through Klarna, which typically returns an instant approval decision. No security deposit is required, and lease details — billing schedule, total cost, and remaining payments — are managed through the Klarna app.
At the end of a lease term, customers have three options: return the device and exit the program, pay the remaining balance in a lump sum to keep it, or return it and roll into a new lease on a newer device. The payoff amount is the difference between what’s already been paid and the device’s retail price, minus any trade-in credit — Klarna does not charge an additional fee for this, so paying off a $1,099 iPhone costs $1,099 total plus tax.
If a customer takes no action when the term ends, the lease automatically converts to a month-to-month arrangement for up to six months, after which they’re charged the payoff amount.
Leasing an iPhone requires enrolling in a postpaid plan with AT&T, Verizon, or T-Mobile; prepaid plans and MVNOs such as Mint Mobile or Visible are not eligible. The iPhones themselves ship unlocked, so customers can switch carriers later. Leasing an iPad, Mac, or Apple Watch does not require a carrier plan.
Fees and Penalties
Klarna does not charge late fees; a missed payment simply rolls into the following month’s bill. However, three consecutive missed payments end the lease agreement, triggering a bill for the outstanding balance minus the device’s assessed return value. Unresolved balances can be referred to Klarna’s debt-collection partners.
Customers can end a lease early, but Apple warns of “substantial fees” — effectively the sum of the remaining scheduled payments — for terminating before the term is up. There’s no penalty for paying off a lease early. Damage, loss, or theft can also trigger charges, which are limited to AppleCare+ service fees for covered customers but otherwise billed at the full assessed repair or replacement cost.
Eligibility and Exclusions
To qualify, customers must be at least 18 (or the age of majority in their state), hold a valid Social Security number or ITIN, and be U.S. residents (territories are excluded). Applicants also need an Apple Account in good standing, a Klarna account, and a credit or debit card.
Several products are excluded from the program, including the iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16), and Studio Display. The program cannot be combined with education discounts and isn’t available for refurbished devices, Apple Employee Purchase Plan orders, or government, veteran, military, or business purchase programs.
What Happens to the Old Program
Apple stopped accepting new sign-ups for the iPhone Upgrade Program the same day Apple Upgrade launched. Customers already enrolled can continue making payments until their current iPhones are paid off, but will need to switch to Apple Upgrade or another financing option for their next purchase. Apple Card holders can still use Apple Card Monthly Installments, or choose Apple Upgrade and earn 3% Daily Cash back on lease payments made with the card.