Apple's new Upgrade plan may seem affordable at first glance, but it’s important to keep in mind who actually owns the device.

      Apple Upgrade could be ideal for frequent upgraders. However, the majority of users aren't in that category.

      Apple has discovered a clever method to make an expensive iPhone more accessible. Apple Upgrade allows customers to lease qualifying devices through Klarna, with terms of either 12 or 24 months for iPhones. At the lease's conclusion, you can return the device, start a new lease, or pay off the remaining balance to own it.

      Initially, I was concerned about the value customers forfeit by returning an iPhone they could have sold or traded. While that concern still holds weight, the program is much more appealing to a specific group of individuals who regularly replace their iPhones each year. The real question is… how many people actually do that?

      Recent industry statistics indicate that annual upgraders are not the majority. According to Assurant’s Q1 2026 trade-in report, the average phone was 3.81 years old at trade-in. A previous annual report indicated that the average traded-in iPhone was 3.76 years old at the end of 2025. This shows that customers typically hold onto their devices for nearly four years. Someone adhering to that pattern has little incentive to lease an iPhone for 12 months and restart their payments every year.

      Purchasing allows them several additional years of usage after the lease period concludes. They can also sell or trade the device later, recouping some of the initial investment. Apple's devices tend to hold value well in this context. Despite recent reports of Apple reducing trade-in values for several newer iPhones, those reduced offers can still yield hundreds of dollars towards another device. Returning a leased unit means giving that leftover value back to Apple and Klarna.

      While there is still a smaller segment of users who change phones rather quickly. SellCell reported in February 2026 that the iPhone 17 Pro Max had already emerged as the most popular device in its top-20 trade-in list, despite launching only five months prior. Strong resale prices likely motivated some owners to sell early.

      Tech enthusiasts, collectors, and those eager for the latest model might upgrade their iPhones annually or even more frequently. Apple Upgrade simplifies the process by finding buyers, comparing trade-in offers, and timing sales before new launches. For instance, Apple cites a 256GB iPhone 17 Pro lease at $45.99 per month for 12 months, totaling $551.88 for a year on a device initially priced at $1,099.

      For those who upgrade annually and dislike the resale process, this can be a reasonable fee for added convenience. However, those changing phones two or three times a year would find less value in it. Apple notes that terminating a lease early could incur significant fees, making the 12-month term the practical minimum.

      Apple Upgrade is not inherently a bad deal. It provides clear advantages that could benefit customers before making a large purchase. Users no longer have to hunt for good resale options, offering annual upgraders a straightforward route to their next iPhone. Some will willingly pay for that convenience.

      The average iPhone owner seems to follow a three-to-four-year upgrade cycle. For them, purchasing remains the smarter choice as it brings ownership and years of additional usage. Compared to Android devices, Apple’s iPhones generally maintain better resale value, making it more financially prudent to opt for a standard purchase.