Apple launched a new US leasing program called Apple Upgrade on Tuesday, partnering with Klarna to let customers pay monthly for iPhones, Macs, iPads, and Apple Watches. The rollout replaces the iPhone Upgrade Program that Apple has offered since 2015 amid industry-wide memory shortages and rising retail prices.
Apple is transitioning customers from its older financing model to a broader leasing scheme that covers multiple product categories. The new offering goes live online, through the Apple Store app, and inside physical retail locations across the United States.
Enabled by Klarna, prices for leasing Apple products will start at $18 a month for an iPhone and $12 a month for an Apple Watch, with 12- and 24-month leasing options. If you’re in the market for an iPad or Mac, you’re likely to keep that device for longer, and Apple is offering 24- or 36-month leasing options for these devices. You can explore the different options either online or through the Apple Store, or you can go to a physical Apple Store in person. If you have an existing device to trade in, you can also lower your monthly leasing costs. The leasing program is likely to come as welcome news to anyone overwhelmed by the thought of buying an Apple device outright — especially right now. Just last month, Apple abruptly raised prices of all of its devices due to RAMageddon, the industry-wide memory shortage that’s pushing up prices not just of Apple products, but all consumer electronics.
Under the updated terms, monthly lease prices start at $17.99 for an iPhone. The structure shifts the financial focus away from high up-front costs at a time when consumers face tighter household budgets and manufacturers grapple with rising component expenses.
How Apple Upgrade Works and What It Costs
Lease durations vary by device type. Phones and watches carry 12- or 24-month terms, while tablets and computers stretch across 24- or 36-month periods. The program covers most current hardware, including iPhones, the MacBook Air, MacBook Pro, iMac, Mac Studio, iPad Pro, iPad Air, iPad mini, Apple Watch Series 11, and Apple Watch Ultra 3.
Meanwhile, a 256GB iPhone 17 Pro starts at $31.99 a month on the 24-month plan, or $45.99 a month for those who want out in a shorter timeframe.
Application processing runs through Klarna. After passing a soft credit check, customers will be offered a one- or two-year lease on an iPhone. There will be a similar option for an Apple Watch, or a two- or three-year lease available for Macs and iPads. Anyone leasing an iPhone also needs to be on a postpaid plan with AT&T, T-Mobile, or Verizon, as prepaid carriers don’t qualify.
Industry Pressures and Pricing Context
The debut follows a turbulent month for consumer electronics pricing. Apple abruptly raised prices on many of its devices, largely thanks to the industry-wide memory shortage known as RAMageddon, raising starting iPad and Mac prices by at least $100, with some models increasing by more than $1,000.
Analysts expect iPhone price hikes this year and say that leasing lets Apple shift the focus from a higher up-front sticker price to a lower monthly payment. As Nabila Popal, senior research director at IDC, told CNBC: Most of Apple's consumers, especially in the U.S. and other developed markets, are buying devices on installment plans or trade-ins, so we can expect to see much more aggressive offers.
Excluded Devices and End-of-Term Options
Not all hardware qualifies for the program. Notably, the iPhone 16, base iPad, and MacBook Neo aren’t eligible. Under Apple Upgrade, consumers can lease an iPhone or Apple Watch for either 12 or 24 months, and 24 to 36 months for Macs and iPads. At lease maturity, users can simply exit the program and return their device, return and upgrade to a new device, or buy out the device they have. When you reach the end of your plan, you can end your subscription and keep your device by paying it off, leave the program and return the device, or upgrade to a newer model and begin a new lease. Users have the option to upgrade early at any point during their lease.
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