Apple has started a new leasing program called “Apple Upgrade.” It lets customers use the latest iPhones and other Apple devices by paying a small amount every month instead of paying the full price at once. The program was announced on July 28 and is being offered with buy-now-pay-later company Klarna. It is available for iPhones, Apple Watches, iPads and Mac computers.
Customers can choose lease periods of 12, 24 or 36 months, depending on the device they want. Under the new program, customers can lease an iPhone for “$17.99/18 a month,” making it a more affordable way to get a new iPhone without paying the full cost upfront.
Apple Upgrade replaces two older programs in the United States — the iPhone Upgrade Program and iPhone Payments. Those programs have now been discontinued. Customers who were already using Apple’s old iPhone Upgrade Program can switch to the new Apple Upgrade leasing program once they become eligible.
How Apple upgrade works
Customers lease a device and pay a fixed monthly amount during the lease period instead of purchasing the product immediately.
When the lease ends, customers have three choices: upgrade to the newest Apple device, buy the leased device by making a one-time payment, or return the device and leave the program, as noted by USA Today.
Which iPhones are included?
As of July 28, the program includes four iPhone models:
Monthly lease prices for iPhones
The monthly lease prices for iPhones are:
- iPhone 17e: “$17.99 a month” for 24 months
- iPhone 17: $23 per month for 24 months
- iPhone Air: $29 per month for 24 months
- iPhone 17 Pro: $32 per month for 24 months
Monthly lease prices for iPads
Apple also offers these iPad lease plans:
- iPad mini: $12/month for 36 months
- iPad Air: $16/month for 36 months
- iPad Pro: $25/month for 36 months
Monthly lease prices for Apple Watches
Apple Watch lease prices are:
- Apple Watch Series 11: $12/month for 24 months
- Apple Watch Ultra 3: $25/month for 24 months
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Monthly lease prices for Macs
Mac lease prices are:
- MacBook Air: $25/month for 36 months
- MacBook Pro: $39/month for 36 months
How to apply
Customers can apply for Apple Upgrade either online through Apple or by visiting an Apple Store. During the application, customers first choose the product they want, including the model, colour and storage option. Customers then select the lease period. iPhones and Apple Watches are available for 12- or 24-month leases, while Macs and iPads can be leased for 24 or 36 months.
Customers also need to choose their mobile carrier before submitting the application, via USA Today. Apple says every applicant will go through a soft credit check, which does not affect the person’s credit score. Once the application is approved, customers can complete the purchase process like a normal Apple order.
Who can apply?
Apple says applicants must meet several conditions to qualify for Apple Upgrade. Applicants must be residents of the United States. Applicants must be at least 18 years old. Applicants must have a valid Social Security number or Individual Taxpayer Identification Number (ITIN).
Applicants must have an accepted credit or debit card. Applicants must have an Apple Account that is in good standing. Applicants must also have a Klarna account. Applicants must be able to receive security verification codes by text message.
How is it different from carrier financing?
Apple says the biggest difference is ownership of the device. With financing plans from mobile carriers such as T-Mobile or AT&T, customers own the phone after completing all payments, according to USA Today. With Apple Upgrade, customers do not automatically own the device after the lease ends. They must either buy it with a one-time payment, upgrade to a newer model, or return it and leave the program.
