Apple's latest Upgrade program allows you to lease an iPhone, Mac, Apple Watch, and iPad.

      Apple has officially introduced Apple Upgrade, a leasing initiative that allows customers to make monthly payments for an iPhone, iPad, Mac, or Apple Watch instead of purchasing the device outright. This program became available today on Apple’s website in collaboration with Klarna, taking the place of the iPhone Upgrade Program that has been in effect since 2015.

      Options for leasing and associated costs

      The duration of the lease varies based on the selected device. iPhones and Apple Watches come with shorter terms of 12 or 24 months, whereas iPads and Macs offer longer terms of 24 or 36 months, allowing more time before the lease concludes. The program includes most current devices such as iPhones, MacBook Air, MacBook Pro, iMac, Mac Studio, iPad Pro, iPad Air, iPad mini, Apple Watch Series 11, and Apple Watch Ultra 3. However, the iPhone 16, base iPad, and MacBook Neo are not included. To lease an iPhone, customers must also have a postpaid plan with AT&T, T-Mobile, or Verizon, as prepaid carriers are ineligible.

      Pricing varies by device. For instance, a 256GB iPhone 17 Pro starts at $31.99 per month under a 24-month plan, or $45.99 monthly for a 12-month option. Similarly, a 256GB iPad Pro begins at $24.99 monthly over 36 months, while a 16GB MacBook Pro starts at $38.99 monthly for the same duration.

      Apple does not require a security deposit for the lease, nor does it permit down payments to lower monthly rates. However, customers can utilize a trade-in to decrease the monthly payment for the initial lease period.

      Understanding your commitment

      The sign-up process appears straightforward. Apple mandates a Klarna account and only conducts a soft credit check, meaning that applying won’t impact credit scores; however, Klarna manages the relationship throughout the lease period, handling billing through its own app instead of Apple’s.

      The terms become more intricate from this point. Customers can upgrade to a new device before a lease concludes, but the fee for doing so increases with the number of remaining payments, making early upgrades a more complex financial decision instead of a straightforward exchange. At the lease's end, the device must be returned in good condition, or Apple will impose a damage fee, which can be mitigated by enrolling in an AppleCare plan, although it is not included in the lease price as it was with the previous iPhone Upgrade Program.

      Apple is also allowing a limited period to fully cancel the lease. If customers cancel within 14 days of receiving the device, the lease is voided, but missing this timeframe results in an early termination fee. Those who complete the full lease term have three options: upgrade and return the current device, exit the program and return it, or pay a one-time fee via Klarna to purchase the device outright. If more than six months pass before deciding, the option is eliminated, as Apple will automatically charge the purchase fee.

      Apple Upgrade replaces a financing model centered around outright ownership with one where monthly payments do not guarantee ownership of the device. Customers considering enrollment should review the fee structure in Apple’s FAQ carefully, as it clarifies the actual costs of the program better than the marketing content on the site.