Apple has introduced Apple Upgrade, a new leasing program for iPhone, Apple Watch, Mac, and iPad, available online, in the Apple Store app, and in Apple retail locations across the United States. The program replaces the old Apple iPhone Upgrade program, which is now retroactive to new customers, and switches financial transactions from Citizens One to Klarna.
As technology prices continue to rise and smartphone sales decline, Apple Upgrade will give customers a new way to try Apple’s latest devices. The plan comes a few months before Apple is expected to unveil the iPhone 18.
Unlike the previous program, which functioned as a loan that ultimately transferred ownership of the device to the customer, Apple Upgrade is clearly structured as a lease. Customers pay a monthly fee to use the device for a fixed period of time, and at the end of that period, they can upgrade to something new, pay a purchase fee to keep the device, or return it and walk away. If they do nothing, the lease automatically converts to a month-to-month plan for up to six months, with payments that may increase during that time.
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If you’re thinking about leasing your next iPhone or Apple Watch, we’ve put together answers to some of the most common questions about how Apple’s new leasing program works.
What is Apple’s development plan?
Apple Upgrade is a Klarna-backed leasing program for US consumers that started on July 28, and allows customers to lease new Apple devices for a period of 12, 24, or 36 months, depending on the brand. For the Apple iPhone upgrade program, lease rates start at just $17.99 per month, but users can lower their monthly payments by trading in their current iPhone with Apple Trade In. You can read more about the program in Apple’s newsroom or sign up for a subscription on Apple’s website.
Which devices are suitable?
Apple Upgrade includes multiple iPhone, Apple Watch, Mac, and iPad devices. Eligible devices are:
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iPhone 17
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iPhone 17e
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iPhone 17 Pro
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iPhone Air
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Apple Watch Series 11
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Apple Watch Hermès Series 11
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Apple Watch Ultra Watch 3
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Apple Watch Hermès Ultra 3
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M5 MacBook Air
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M5 MacBook Pro (M5 Pro and M5 Max also included)
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M4 iPad Air
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iPad Mini (A17 Pro Chip)
A number of older or budget models are excluded, including the iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac Mini, iPad (A16), and Studio Display. Vision Pro is also not included.
How long are the lease terms?
iPhone and Apple Watch leases are valid for 12 or 24 months. Mac and iPad leases are valid for 24 or 36 months. Not all words are available on all devices.
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How much does it cost per month?
Pricing starts at $17.99 for iPhone, $11.99 for Apple Watch, $24.99 for Mac, and $11.99 for iPad, though actual fees vary by device, storage tier, and lease length. No security deposit is required, and trading in an existing device through Apple Trade In can lower the monthly price.
Do I own the device at the end of the lease?
No, unless you pay the device purchase fee at the end of the term. If not, you are expected to upgrade to a new lease or return the device in acceptable condition. Returning a damaged, lost, or stolen device may incur additional charges, and insurance is not included in the rental itself.
Is there a credit check?
Yes, but it’s a soft question that doesn’t affect your credit score. Final approval, including any monthly payment you are offered, is subject to Klarna’s assessment of your creditworthiness.
What about AppleCare?
AppleCare is not automatically bundled with Apple Upgrade the way it was with the old iPhone Upgrade Program. Customers can add AppleCare+ or AppleCare One separately to cover accidental damage, theft, loss, and battery service.
Can I use Apple Card for this?
Yes, payments made with an Apple Card earn 3 percent Daily Fee, and Apple Card Monthly Installments remain a separate, alternative financing option other than Apple Upgrade for customers who choose to buy the device right away.
What happens to people who are already in the iPhone Upgrade Program?
Existing members are not required to do anything. They can continue to make their monthly payments under their existing agreement with Citizens One, and once their 24-month term is up, the device is theirs to keep, no down payment required.
When they’re ready for a new iPhone, they’ll have the option to switch to an Apple Upgrade, finance it with monthly Apple Card installments, buy the device outright, or use carrier financing instead.
Who is eligible to rent with Apple Upgrade?
You need to be a US citizen at least 18 years old, have a valid Social Security number or ITIN, hold an Apple Account in good standing, have a Klarna account, and have an accepted credit or debit card on file.
Leasing an iPhone requires enrolling in a postpaid plan with AT&T, T-Mobile, or Verizon – prepaid plans are not eligible, although iPhone rentals are open.
What happens if I miss a payment?
Recently, 9to5Mac found code in the iOS 27 beta that suggested Apple and lenders could put phones in “Restricted Mode” if a user falls behind on payments. However, that is not part of the Apple Upgrade program. Instead, missed payments will be automatically added to the next month’s bill.
MacRumors also reports that there are no late fees for missed payments, but three missed payments will result in Klarna terminating your contract.