Apple has launched Apple Upgrade, a new U.S. leasing program that lets eligible customers get an iPhone for as little as $17.99 per month without purchasing it upfront. The Klarna-backed service also covers selected Apple Watches, Macs and iPads.
The program became available on July 28 through Apple retail stores, Apple’s website and the Apple Store app. It arrives as higher electronics prices and longer replacement cycles make premium devices harder for some consumers to buy outright.
The key distinction is that Apple Upgrade is a consumer lease, not an installment purchase. Customers do not automatically own the device after completing the scheduled monthly payments.
Apple Upgrade prices and lease terms
Prices start at $17.99 per month for an iPhone, $11.99 for an Apple Watch, $24.99 for a Mac and $11.99 for an iPad. The actual payment depends on the model, configuration and lease length.
- iPhone and Apple Watch: 12 or 24 months
- Mac and iPad: 24 or 36 months
An iPhone 17 Pro 256GB costs $31.99 monthly for 24 months or $45.99 for 12 months. An Apple Watch Series 11 GPS 42mm costs $11.99 over 24 months, while an 11-inch iPad Pro 256GB costs $24.99 over 36 months.
A 14-inch MacBook Pro with 16GB of memory costs $38.99 monthly for 36 months. Taxes, AppleCare and any end-of-lease purchase payment are additional. The first payment is generally due about 30 days after shipment or store pickup.
Which Apple devices are eligible?
Eligible phones include the iPhone 17e, iPhone 17, iPhone Air, iPhone 17 Pro and iPhone 17 Pro Max. Customers considering the cheapest participating model can compare the iPhone 17e price and specifications.
The program also covers Apple Watch Series 11, Apple Watch Ultra 3, MacBook Air, MacBook Pro, iMac, Mac Studio, iPad Air, iPad Pro and iPad mini.
Excluded products include the iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, base iPad with the A16 chip and Studio Display. Refurbished devices and accessories are also ineligible.
Eligibility and credit requirements
Klarna conducts a soft credit inquiry when a customer applies. Apple says it will not affect the applicant’s credit score, although approval remains subject to eligibility and creditworthiness. No security deposit is required.
Applicants must be U.S. residents of legal age with a Social Security number or ITIN, an accepted payment card, an Apple Account in good standing, a Klarna account and access to text-message verification. The program is unavailable in U.S. territories.
For an iPhone lease, customers must initially select AT&T, T-Mobile or Verizon. Prepaid service is not accepted, but the leased iPhone remains unlocked, allowing a later carrier change under the carrier’s terms.
Trade-ins and Apple Card rewards
An eligible trade-in can reduce the monthly payment when a customer first enrolls. Apple Card users may also receive 3% Daily Cash on lease payments, subject to Apple Card eligibility.
What happens when the lease ends?
Customers can return the device and exit, return it while applying for a new lease, or keep it by paying the one-time purchase fee stated in the agreement.
Upgrading requires a new application and the return of the existing product. Approval is not guaranteed, and the replacement device may carry a higher monthly payment.
If the customer takes no action, the agreement may become a month-to-month lease for up to six months, potentially at a higher rate. Klarna may charge the contractual purchase fee if no decision is made before that extension ends.
Damage, missed payments and early termination
AppleCare is optional and not included in the advertised monthly price. Charges may apply if a leased device is lost, stolen, not returned or returned with unacceptable damage.
Ending a lease before its original term expires may result in substantial fees. Klarna reportedly does not impose conventional late fees, but it may terminate an agreement following three months of missed payments. Customers should review their individual contract for default and device-return rules.
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Is leasing cheaper than buying?
Twenty-four payments of $31.99 on an iPhone 17 Pro total $767.76 before taxes. That is below its $1,099 retail price because the customer must return the phone or pay an additional buyout amount to own it.
Apple Card Monthly Installments and carrier financing remain available. Carrier promotions may use monthly bill credits and require specific service plans, as demonstrated by T-Mobile’s iPhone 17 offer. Buyers should compare the total cost, wireless-plan requirements and ownership outcome.
What happened to the iPhone Upgrade Program?
Apple has discontinued the iPhone Upgrade Program and iPhone Payments for new U.S. transactions. The previous program covered only iPhones and included AppleCare+, while protection under Apple Upgrade costs extra.
Existing participants may move to Apple Upgrade when eligible, use Apple Card Monthly Installments, choose carrier financing or buy outright. Apple’s official leasing terms provide the full eligibility, return and purchase conditions.
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