Apple has launched Apple Upgrade, a new Klarna-backed leasing program in the United States replacing older financing options. Available online and in retail stores starting July 28, 2026, the service lets customers lease devices like the iPhone 17 starting at $17.99 per month across flexible 12- to 36-month terms.
Apple Inc. has introduced Apple Upgrade, a major overhaul to how shoppers finance hardware across the United States. Rolling out to the Apple Store online, the Apple Store app, and physical retail locations, the program arrives as rising hardware costs and shifting consumer buying habits push buyers toward monthly flexibility.
How the Klarna-Backed Leasing Program Works
Unlike previous financing agreements that functioned as installment loans transferring eventual ownership to the buyer, Apple Upgrade is structured explicitly as a lease. Customers pay a recurring monthly fee for a fixed term, and at the conclusion of that period, they can upgrade to a newer model, pay a purchase fee to keep the current hardware, or return it and walk away. If a customer takes no action at the end of the term, the lease converts automatically into a month-to-month arrangement for up to six months, during which payments may increase.
Lease terms span 12 or 24 months for iPhone and Apple Watch, while Mac and iPad options extend to 24 or 36 months. Monthly pricing starts as low as $17.99 per month for iPhone and $11.99 per month for Apple Watch, with Mac leasing starting at $24.99 per month. No security deposit is required to enroll.
“At Apple, we put the customer at the center of everything we do, and we’re thrilled that Apple Upgrade offers our customers, both online and in-store, a more flexible way to pay for the products they love.”
Karen Rasmussen, Apple’s vice president of the Apple Store online
Eligible Devices and Excluded Models
The leasing initiative covers a broad catalog of current hardware, including the iPhone 17, iPhone 17e, iPhone 17 Pro, and iPhone Air. Tablet and computer buyers can select from M5 MacBook Air, M5 MacBook Pro variants, M4 iPad Air, and the iPad Mini powered by the A17 Pro chip.
Several older or budget-tier models remain excluded from the program, however. Shoppers cannot lease the iPhone 16 series, the Apple Watch SE, the MacBook Neo, Mac Mini, iPad with the A16 chip, Studio Display, or the Vision Pro.
Trade-Ins, Credit Checks, and Payment Perks
Participants can reduce their monthly leasing obligations further by trading in their currently owned device through Apple Trade In. Furthermore, customers who make their lease payments using an Apple Card earn 3 percent Daily Cash back.
Applicants undergo a credit assessment during enrollment, but Klarna conducts a soft credit inquiry that does not impact the customer’s credit score. To qualify, users must be U.S. residents at least 18 years old with a valid Social Security number or ITIN, an Apple Account in good standing, a Klarna account, and an accepted payment card on file. iPhone leases also require connecting the device to a postpaid plan with AT&T, T-Mobile, or Verizon.
Transitioning Away From the Old iPhone Upgrade Program
With the arrival of the new leasing structure, Apple is winding down the legacy iPhone Upgrade Program and iPhone Payments for new U.S. customers. Existing members enrolled under the prior Citizens One agreement face no immediate changes; they can continue their current payment schedule until their 24-month term finishes, at which point the device becomes theirs to keep without any final purchase fee.
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