CUPERTINO, Calif., July 29 (San Francisco News Online) — Apple has started a new U.S. device leasing program called Apple Upgrade, a move that gives customers another way to get an iPhone, iPad, Mac or Apple Watch without paying the full price up front.
The program, announced by Apple and powered by Klarna, is available through Apple Store online, the Apple Store app and Apple Store locations in the United States. For Apple, the change replaces older U.S. payment options for iPhone and adds a new financing-style path that could help support device sales. For customers, it creates a lower monthly entry point, but it also means the device is being leased rather than owned outright unless the customer pays to keep it later.
How Apple Upgrade works
Apple said Apple Upgrade offers monthly leasing terms of 12 or 24 months for iPhone and Apple Watch, and 24 or 36 months for Mac and iPad. Apple said monthly prices start at $17.99 for iPhone, $11.99 for Apple Watch, $24.99 for Mac and $11.99 for iPad.
At the end of the lease, customers can return the device, buy it with a one-time payment or move to a newer model, according to Apple’s launch details as reported by Reuters.
Apple also said customers can lower their monthly payment by trading in an existing device through Apple Trade In when they first enroll in Apple Upgrade.
Why the Klarna deal matters
Klarna is the financing partner behind the program. Apple said applicants will go through a soft credit check by Klarna, which Reuters reported would not affect a customer’s credit score. That is important for consumers because it makes the approval step less harsh than a traditional hard credit inquiry, while still letting the lender assess risk.
For Klarna, the deal puts its consumer-finance platform in front of Apple’s large U.S. customer base. For Apple, it adds a partner that specializes in flexible payments and leasing, which may help make higher-priced devices more accessible to buyers who prefer monthly payments.
What happens to Apple’s older payment programs
Apple said that with the launch of Apple Upgrade, it will no longer offer the iPhone Upgrade Program and iPhone Payments in the United States.
Current members of the iPhone Upgrade Program will still have choices when they become eligible for an upgrade. Apple said they can lease a new device with Apple Upgrade, finance with Apple Card Monthly Installments, purchase outright or choose carrier financing.
Who is affected
Customers are the most immediate audience for the change, especially people who prefer monthly payments over a full purchase price. The new program also matters to investors, because Apple is trying a new way to keep buyers inside its product ecosystem and move devices through its retail channels.
Apple’s retail operations may also benefit if a lower monthly entry point encourages more upgrades. At the same time, the shift could reduce the role of Apple’s older in-house payment programs in the U.S. market.
Why Apple is doing this now
Apple did not frame the launch as a replacement for ownership, but as another option for customers who want access to its hardware through recurring payments. In business terms, the program gives Apple another way to support device demand at a time when consumer spending choices are closely watched by investors and retailers.
The move also keeps Apple’s U.S. customer financing options tied closely to its own store channels and to a named partner, Klarna, rather than relying only on Apple’s previous programs.
In practical terms, Apple Upgrade is a simpler question for many customers: pay monthly, trade in a device if eligible, and either return it or keep it later. For Apple, it is a new sales channel strategy wrapped inside a leasing model.
