Apple has introduced a new leasing program named Apple Upgrade. This program, supported by Klarna, targets users of iPhones, iPads, Macs, and Apple Watches. Apple has also ceased new enrollments for the iPhone Upgrade Program. The shift provides customers more options for upgrading devices. However, it raises questions about cost-effectiveness for Apple’s millions of users.
What Is Apple Upgrade?
Apple Upgrade allows you to lease products like iPhones, iPads, Macs, and Apple Watches for a monthly fee. You can select from different lease terms based on the product. At the end of the lease, you have three options: upgrade to a new device, purchase the current one outright, or return it and exit the program. The service is accessible online, through the Apple Store app, and in Apple retail stores across the United States.
Applicants undergo a soft credit check, which does not impact their credit score. This launch also ends new sign-ups for the iPhone Upgrade Program, a scheme for financing iPhones over 24 months and enabling upgrades after 12 payments. The launch is part of a transitional phase as Tim Cook moves to executive chairman, with John Ternus taking over as CEO by September 1, 2026.
Apple Upgrade vs. iPhone Upgrade Program
One key factor for users who upgraded their iPhones annually is the monthly cost. According to Apple, the Apple Upgrade lease is approximately $11 cheaper per month for models like the iPhone 17 Pro Max compared to the previous iPhone Upgrade Program.
Why the New Program Looks Cheaper
The reduction in cost stems partly from the previous program’s inclusion of AppleCare+ with Theft and Loss in the monthly payment. While users of the old program will continue to receive that coverage, the new Apple Upgrade does not bundle AppleCare+. You must purchase it separately, with AppleCare+ for Pro-level iPhones costing about $13.99 monthly, or $139.99 annually. As a result, the $134 yearly savings in lease pricing under Apple Upgrade is almost negated if you add similar coverage separately.
What Happens at the End of the Lease?
Ownership is another significant change. Previously, under the iPhone Upgrade Program, you owned the phone after completing 24 monthly payments. Existing program members can continue payments to obtain ownership. With Apple Upgrade, you lease through Klarna and decide at the term’s end whether to purchase, return, or lease another device.
You can reduce payments by trading in an existing device when enrolling and earn 3 percent Daily Cash using an Apple Card.
Apple’s Perspective
Apple describes the new program as a way to provide more flexibility while expanding upgrade-style payments beyond iPhones to other products such as Macs, iPads, and Apple Watches. Lease pricing starts at $17.99 for iPhones, $11.99 for Apple Watches, $24.99 for Macs, and $11.99 for iPads.
Newsweek reached out to Apple for further comments and is waiting for a response.
The Bottom Line
For those upgrading iPhones annually, the Apple Upgrade appears approximately $134 cheaper per year based on advertised monthly payments. However, the previous program bundled AppleCare+ with Theft and Loss, which the new program does not include by default. Once you consider adding similar coverage separately, the cost advantage largely disappears.
Overall, the biggest shift may not be the price difference. Rather, Apple is moving users from a financing program that led to ownership, into a leasing model offering flexibility and regular upgrades.