Apple has introduced Apple Upgrade, a new leasing program supported by Klarna. This program applies to iPhones, iPads, Macs, and Apple Watches. Concurrently, Apple has ceased new enrollments in the longstanding iPhone Upgrade Program. While this change provides customers with more device upgrade options, it prompts a critical inquiry: will the new lease offer financial savings?
Understanding Apple Upgrade
Apple Upgrade allows users to lease an iPhone, iPad, Mac, or Apple Watch by paying a monthly fee. Customers can select from different lease durations based on the product. Upon completing the lease, options include upgrading to a newer model, purchasing the device, or returning it. This program is accessible online, via the Apple Store app, and in Apple retail outlets throughout the United States. Applicants undergo a soft credit check that does not impact their credit score.
This launch signifies a shift from the iPhone Upgrade Program, which involved a 24-month payment plan and eligibility for an upgrade after 12 payments. The introduction of Apple Upgrade coincides with a transitional phase for the company. Tim Cook is set to take the role of executive chairman in April, while John Ternus, the hardware chief, will assume the CEO position starting September 1, 2026. Apple Upgrade marks one of the initial consumer-oriented initiatives during this leadership change.
Comparing Apple Upgrade to iPhone Upgrade Program
For users accustomed to yearly iPhone upgrades, the cost comparison is vital. According to Apple, the new Apple Upgrade lease is approximately $11 cheaper per month across the iPhone 17 Pro Max range versus the previous iPhone Upgrade Program.
Reasons for the Apparent Cost Reduction
The key reason for the lower monthly pricing is that the former iPhone Upgrade Program included AppleCare+ with Theft and Loss protection in the monthly fee. Existing iPhone Upgrade Program users retain this coverage while their payment plan remains active.
In contrast, under Apple Upgrade, AppleCare+ must be purchased separately. Publications focused on Apple indicate that AppleCare+ with Theft and Loss for current Pro-level iPhones costs about $13.99 per month or $139.99 per year. Thus, the $134 annual saving in Apple’s lease pricing nearly vanishes if users opt to add equivalent coverage individually.
End-of-Lease Options
Ownership represents another critical distinction. Previously, under the iPhone Upgrade Program, customers financed their devices with a 24-month loan and owned them after completing payments. Current members can continue payments until ownership is achieved.
With Apple Upgrade, devices are leased through Klarna. Upon term completion, customers can purchase, return, or transition to a new lease. Apple notes that payments can be reduced by trading in an existing device upon enrollment, and users earn 3 percent Daily Cash with Apple Card payments.
Apple’s Perspective
Apple states the new program aims to provide customers with greater flexibility. It broadens upgrade-style payment options beyond iPhones to include Macs, iPads, and Apple Watches. Lease pricing commences at $17.99 for iPhones, $11.99 for Apple Watches, $24.99 for Macs, and $11.99 for iPads.
Apple is yet to respond to Newsweek’s request for comment.
Conclusion
For users who regularly upgrade iPhones, the new Klarna-backed lease seemingly offers a $134 annual saving based on monthly payments. Nonetheless, the absence of AppleCare+ with Theft and Loss inclusion offsets the perceived savings when such coverage is added. This shift indicates a transition from a program that combined protection and ownership to a leasing model emphasizing flexibility and recurrent upgrades.