What is the cost of Apple’s Upgrade plan for leasing devices and is it beneficial?
Apple has introduced a new way to acquire an iPhone, iPad, Mac, or Apple Watch without the need for an outright purchase. The recently launched Apple Upgrade program allows you to lease Apple devices through Klarna rather than paying the full price upfront, and I must admit that the monthly costs are quite appealing.
I examined Apple's listed rates for each device to determine where this option could lead to savings and where it might just be a more gradual way to pay the full price for something you'll never actually own.
Who is eligible for Apple Upgrade?
Apple Upgrade utilizes Klarna as the leasing provider. Applying for a device initiates only a soft credit check. To apply, you must be at least 18 years old, a US resident, verified via SMS, and possess an eligible credit or debit card, along with your Social Security number.
This program allows for the leasing of iPhones and Apple Watches over a 12 or 24-month period, while iPads and Macs can be leased over 24 or 36 months.
Most current models qualify, with exceptions including the iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, the base iPad, and Studio Display.
iPhones also require an active account with AT&T, T-Mobile, or Verizon, but the devices are shipped unlocked. AppleCare+ is no longer included; it must be purchased separately.
What occurs when your lease concludes?
At the end of the lease, you have three choices based on what you'd like to do with the device: return and upgrade, pay to own, or walk away empty-handed.
Apple permits you up to six months after your term ends to make your decision. If you take no action, Klarna will automatically charge you the purchase-option fee.
**Option** | **Pros** | **Cons** | **Best For…**
--- | --- | --- | ---
Return & Upgrade | Latest features every 1–2 years | Infinite monthly bills | Tech enthusiasts wanting the newest model annually.
| No hassle selling old tech | Build no device equity and suffer loss on trade-in value | Fresh battery life | Miss out on carrier deals
Pay to Own | Monthly bills drop to $0 | Highest total cash spent | Individuals planning to keep their device for 4+ years.
| Retain a valuable asset | Premium payment to buy out | Freedom to sell or trade later
Walk Away | Clean break from debt | Spent thousands on a rental | Those switching away from Apple ecosystems entirely.
| No future financial ties | Left without a phone/computer | No further obligations
iPhone: Is leasing worth the savings?
Looking at the iPhone 17e priced at $599 on a lease-and-return plan, if you lease it for 24 months at $17.99 a month, you’ll spend about $432 total before returning the phone. Essentially, you never actually own the device; you merely rent it for two years.
Should you choose to keep the phone, you'd pay the difference, approximately $165 to $170 more for the 17e. Adding this to your lease payments brings the total to around $599, which is the exact price you would have paid if you purchased the iPhone outright from the start.
This aspect is where I see the true appeal of Apple Upgrade. It offers flexibility in managing costs, allows you to keep your cash available for other priorities, and still provides the option to own the device later. However, I believe this program is more advantageous for higher-priced Pro models compared to entry-level iPhones, where the initial cost is easier to rationalize.
iPad: Is the monthly obligation worthwhile?
Considering that buyers usually keep their iPads longer than their iPhones, Apple provides longer leasing terms for them: 24 or 36 months. If you're a student or an entry-level professional seeking an iPad for studies or daily tasks, leasing can be a sensible choice.
You’ll avoid the upfront cost of $599 for the iPad mini or $749 for the iPad Air, paying $11.99 or $15.99 per month for 36 months. Depending on your needs, you can either pay the difference to keep the device or upgrade to the latest model without any added payment.
There are no discounts involved—just a straightforward option.
Mac: A better deal or simply larger bills?
If you find yourself lacking the funds to pay upfront but wish to upgrade from an older Intel-based MacBook or even an M1- or M2-powered MacBook Air, the Apple Upgrade program allows you to break that initial cost into monthly payments starting at just $24.99 over 36 months.
However, it's important to consider another aspect. The M5 chip series provides sufficient performance capacity to remain relevant for four to five years, which is why I anticipate these MacBooks will retain their resale value quite well.
Therefore, I'd recommend stretching the payments over
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What is the cost of Apple’s Upgrade plan for leasing devices and is it beneficial?
From iPhones to MacBooks, here’s an overview of where Apple’s Upgrade Program is effective and where it has limitations.