Apple has officially launched Apple Upgrade, a new product leasing program in the United States available on the Apple Store online, in the Apple Store app, and at physical 9to5mac.com. The new offering is provided in partnership with the buy now, pay later service Theverge, which manages payments and credit approvals on Apple’s behalf.
Apple Launches New Hardware Leasing Program Backed by Klarna
The launch brings sweeping changes to how customers acquire hardware, permanently replacing the legacy iPhone Upgrade Program and iPhone Payments financing options in the United States.
Leasing Terms, Product Availability, and Pricing Structure
Unlike the previous Citizen One-backed loan model, the new program is strictly a lease where Klarna technically owns the device during the payment term. The expanded leasing structure covers a wider range of hardware categories, including iPhones, Apple Watches, Macs, and iPads.
According to Apple, available terms and starting prices vary by device category:
- iPhone: Available with 12-month and 24-month terms, with leases starting at $17.99 per month. Specific examples include the iPhone 17 Pro (256GB) priced at $1,099, available for $45.99 over 12 months or $31.99 over 24 months.
- Apple Watch: Available with 12-month and 24-month terms, starting at $11.99 per month. The Apple Watch Series 11 GPS (42mm) costs $399, priced at $21.99 for 12 months or $11.99 for 24 months.
- iPad: Available with 24-month and 36-month terms, starting at $11.99 per month. The iPad Pro (256GB) costs $1,199, available at $31.99 for 24 months or $24.99 for 36 months.
- Mac: Available with 24-month and 36-month terms, starting at $24.99 per month. The MacBook Pro (16GB RAM/1TB storage) costs $1,999, running $53.99 for 24 months or $38.99 for 36 months.
Certain models are excluded from the program entirely, including the iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16), and Studio Display. Additionally, iPhone leases require a connection to AT&T, T-Mobile, or Verizon, and do not support prepaid plans.
Application, Management, and End-of-Term Options
Customers can apply for the program in minutes either online or in-store through a streamlined enrollment process. All applicants undergo a soft credit inquiry that does not impact their credit score. Once approved, users manage all billing schedules, payment details, and lease information directly inside the Klarna app. Shoppers can also earn 3 percent Daily Cash back when making lease payments with an Apple Card, and can lower initial payments by trading in existing Apple or Android devices.
At the conclusion of a lease term, customers have three choices: upgrade to a new device, purchase the hardware with a one-time payment, or return the device and exit the program.
Transition for Existing Users and Additional Costs
Customers currently enrolled in the legacy iPhone Upgrade Program will not be forced out immediately. When eligible, existing participants can transition into leasing a new device through Apple Upgrade, finance through Apple Card Monthly Installments, buy their product outright, or choose carrier financing.
Unlike past programs, AppleCare is no longer bundled by default into the monthly lease payment. Customers must purchase AppleCare as a separate monthly add-on or via an 9to5mac.com bundle. Apple noted that protection pricing starts at $9.99 per month for iPhones, $5.49 for iPads, $3.99 for Macs, and $4.99 for the Watch Series 11 and up, with an option to protect up to three devices for $19.99 per month. Apple spokesperson Brian Bumbery confirmed that there will be no limitations placed on device functionality due to missed payments or defaults within the program.