Apple Launches New Leasing Program for iPhone, Mac, iPad and Apple Watch in the US; Partners with Klarna
Apple has unveiled a major change to how customers can access its premium devices in the United States. The company has introduced Apple Upgrade, a new leasing program developed in partnership with Klarna, allowing eligible customers to lease iPhones, Macs, iPads, and Apple Watches through flexible monthly payments.
The move replaces Apple's previous iPhone Upgrade Program and expands financing beyond smartphones to include more of Apple's hardware lineup. The announcement comes as flagship device prices continue to rise, offering customers another way to enjoy the latest Apple products without paying the full purchase price upfront.
What Is Apple Upgrade?
Apple Upgrade is a device leasing program, not a traditional installment purchase plan.
Instead of owning the product immediately, customers lease an eligible Apple device for a fixed period and pay a monthly fee. At the end of the lease, they can:
- Upgrade to a newer Apple device
- Return the leased device
- Purchase the device by paying the remaining amount
The program is available through Apple's website, the Apple Store app, and participating Apple retail stores in the United States.
Apple and Klarna Partnership Explained
To power the new service, Apple has partnered with Klarna, one of the world's leading buy-now-pay-later and financing companies.
Klarna manages:
- Customer financing
- Lease approvals
- Monthly billing
- Credit assessment
Apple says applicants go through a soft credit check, meaning the initial application generally does not affect their credit score.
Devices Covered Under Apple Upgrade
The leasing program includes a much broader range of Apple products than before:
- iPhone
- Mac
- iPad
- Apple Watch
This expansion makes it easier for customers to finance multiple Apple devices through a single program.
Lease Duration
The lease period varies depending on the device category:
| Device Lease Term | |
| iPhone | 12 or 24 months |
| Apple Watch | 12 or 24 months |
| iPad | 24 or 36 months |
| Mac | 24 or 36 months |
At the end of the lease, customers can return, upgrade, or buy the device.
Monthly Pricing
Apple says monthly lease prices start from:
| Device-Starting Monthly Price | |
| iPhone | $17.99 |
| Apple Watch | $11.99 |
| iPad | $11.99 |
| Mac | $24.99 |
Actual monthly payments depend on the model, storage option, and lease duration.
Trade-In Benefits
Customers can reduce their monthly lease payments by trading in an eligible Apple device.
If they use an Apple Card for payments, they may also receive 3% Daily Cash on eligible purchases, making the program more attractive for existing Apple users.
What Happens to Existing iPhone Upgrade Program Users?
Apple has confirmed that the new Apple Upgrade program replaces the older iPhone Upgrade Program in the US.
Current members will receive guidance on transitioning to the new leasing system while maintaining access to future device upgrades.
What Does This Mean for Indian Customers?
At launch, Apple Upgrade is available only in the United States.
There is no official announcement regarding availability in India or other international markets. However, if the program performs well in the US, Apple could consider expanding it to additional countries in the future.
For Indian customers, Apple currently continues to offer purchase options through bank EMIs, trade-in offers, and financing partners rather than a dedicated leasing model.
Why Apple Is Introducing Leasing
Several factors appear to be driving Apple's move:
- Rising prices of premium smartphones and laptops
- Consumers keeping devices for longer
- Growing demand for affordable monthly payment options
- Increased interest in upgrading devices more frequently
- Expansion of Apple's subscription-style services
A leasing model can also help Apple increase the supply of refurbished devices and encourage customers to remain within the Apple ecosystem.
Is Leasing Better Than Buying?
For users who upgrade to a new iPhone, Mac, or Apple Watch every year or two, leasing may reduce the upfront cost and simplify the upgrade process.
However, users who prefer to keep their devices for many years may find purchasing outright or using an EMI plan more economical over the long term.
Final Thoughts
Apple's new Apple Upgrade program marks a significant shift in how the company sells its hardware. By partnering with Klarna, Apple is extending flexible monthly payments beyond the iPhone to include Macs, iPads, and Apple Watches, giving US customers more ways to access premium devices.
Although the service is currently limited to the United States, it reflects Apple's growing focus on subscription-like ownership models. Indian consumers should watch closely, as similar financing options could eventually make their way to other markets.
FAQs
What is Apple Upgrade?
Apple Upgrade is a new US leasing program that lets eligible customers lease iPhones, Macs, iPads, and Apple Watches with monthly payments through Klarna.
Is Apple Upgrade available in India?
No. Apple has launched the program only in the United States, with no official timeline for an India rollout.
How much does Apple Upgrade cost?
Monthly pricing starts at $17.99 for iPhones, $11.99 for Apple Watches and iPads, and $24.99 for Macs, depending on the selected model and lease terms.
Can customers own the device after leasing?
Yes. At the end of the lease, customers can return the device, upgrade to a newer model, or purchase it by paying the remaining balance.
Why did Apple partner with Klarna?
Klarna manages financing, billing, and lease approvals, allowing Apple to offer flexible payment options while expanding access to its hardware lineup.