Apple has launched Apple Upgrade, a new leasing program provided by Klarna for iPhone, Mac, iPad, and Apple Watch in the United States.
Shoppers looking at Apple’s latest hardware lineup now have a different path to checkout. Apple launched Apple Upgrade in the United States, shifting how customers finance high-end gear online, in the Apple Store app, and across physical retail locations. The new arrangement, powered by financial partner Klarna, replaces previous financing options like the iPhone Upgrade Program and iPhone Payments.
Terms, Pricing, and Payment Structure Across Devices
The leasing initiative provides distinct term lengths depending on the hardware category. Buyers can secure an iPhone or Apple Watch on 12-month or 24-month leasing options, while Mac and iPad models qualify for 24-month or 36-month terms. According to official announcements, leasing prices start as low as $17.99 per month for iPhone, $11.99 for Apple Watch, $24.99 for Mac, and $11.99 for iPad.
To put the Mac leasing math into perspective, consider a configured 14-inch MacBook Pro featuring a 15-core CPU, 16-core GPU M5 Pro, 24GB of RAM, a 1TB SSD, nano-texture display, and a 70W power adapter. That machine carries an outright retail price of $2,649 before sales tax, fees, and AppleCare+.
“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
Enrollment, Credit Inquiries, and Trade-In Perks
The application workflow is designed to integrate directly into existing retail paths. Customers can complete the enrollment process within minutes either online or inside a retail store, subject to quick approval from Klarna. All applicants face a soft credit inquiry, meaning the initial check will not impact their credit score.
Once approved, in-store buyers walk out with their equipment immediately, while online shoppers choose between home delivery and local pickup. Every transaction includes access to Apple’s Personal Setup service and free educational sessions.
End-of-Lease Choices and Financial Trade-Offs
When a lease term concludes, participants face three distinct paths: upgrade to the newest hardware generation, purchase the machine with a single lump-sum payment, or return the device to exit the program. For customers who choose to buy out the 14-inch MacBook Pro example mentioned earlier, the remaining cost equals $864.84 at the end of a 24-month term or $745.68 following a 36-month term.
While the initial monthly fees look manageable compared to paying the full retail price upfront or financing via a standard Apple Card plan costing $220.75 per month for a year, analysts suggest convenience carries a hidden cost. Total payments across a 24-month or 36-month Mac lease account for 67 percent to 72 percent of the device’s original purchase price. Because Apple hardware historically retains strong resale value on secondary markets, leasing prevents owners from capturing that equity by selling an older machine independently.
Transitioning Away From Older iPhone Plans
The debut of the new leasing framework brings an immediate end to legacy options across the United States. Apple will no longer offer the iPhone Upgrade Program and iPhone Payments. Existing participants in those older structures who reach eligibility can transition to Apple Upgrade, shift to Apple Card Monthly Installments, purchase devices outright, or select carrier financing.
Worth a look
