Apple has officially launched Apple Upgrade, a new leasing program for iPhone, Apple Watch, Mac, and iPad. Instead of paying full price upfront or taking a traditional instalment loan, customers can now pay a flat monthly fee to use the device instead.
How Does Apple Upgrade Work
Apple Upgrade runs in partnership with Klarna, the buy-now-pay-later company, rather than as the Cupertino giant's in-house financing project.
iPhone and Apple Watch buyers can choose 12-month or 24-month lease terms. Mac and iPad buyers get 24-month or 36-month options.
That's a slight departure from an earlier Apple Upgrade Program leak from Bloomberg's Mark Gurman, who had reported a flat 24-month lease for iPhones and Watches and 36 months for Macs and iPads. Apple's actual rollout adds a shorter 12-month tier for phones and watches, giving buyers more flexibility on how quickly they cycle through devices.
Apple Upgrade Program pricing starts at $17.99 (approximately Rs 1,700) per month for iPhones, $11.99 (approximately Rs 1,200) per month for Apple Watches and iPads. Meanwhile, pricing starts at $24.99 (approximately Rs 2,500) monthly for Macs.
Trading in your current device at sign-up can lower those payments further. Moreover, paying through an Apple Card adds 3% daily cashback on every lease payment.
Signing up doesn't require a hard credit check. Apple says approvals run on a soft credit inquiry through Klarna that won't affect your credit score, with most applicants getting approval within minutes.
In-store customers can walk out with their device the same day, while online orders can be shipped or picked up in-store like a regular Apple purchase.
Now, at the end of an Apple Upgrade lease, you have three options:
- Start a new lease and upgrade to a newer device
- Buy out your current device with a lump-sum payment
- Return the device and exit the Apple Upgrade program
In case you miss that window, the lease automatically rolls into a month-to-month arrangement for up to six months, with costs creeping up during that stretch. Apple is also offering AppleCare as an add-on, while Klarna's dedicated app handles billing and payment tracking.
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Apple Upgrade Eligibility Criteria
To be eligible for leasing Apple devices through the Apple Upgrade program, here are a few things to keep in mind:
- Leasing an iPhone requires a postpaid plan with AT&T, T-Mobile, or Verizon. Prepaid carriers aren't eligible, although the device ships unlocked.
- You must be a US resident, at least 18 years old, with a Social Security number or ITIN, an Apple Account in good standing and your own Klarna account.
- Some products like the iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, entry-level iPad and Studio Display are excluded from the program entirely.
Apple has confirmed that the Apple Upgrade program is live starting today on the brand's online store, in the Apple Store app and at physical stores across the US.
Another important thing to note is that Apple has confirmed that it's discontinuing its long-running iPhone Upgrade Program and iPhone Payments plan in the US.
Those who are currently enrolled in the old iPhone Upgrade Program can switch to Apple Upgrade, move to Apple Card Monthly instalments, outright buy their device, or use carrier financing instead.
The timing matters a lot too. Device prices have been climbing industry-wide due to the ongoing RAM supply crunch. Moreover, the brand has already confirmed iPhone price hikes are incoming.
So, Apple Upgrade gives users a solid way to get the Apple experience in a more economical monthly payment structure than having to pay a massive upfront cost.
For now, Apple Upgrade is limited to the US, with no word yet on if or when it might expand to other markets like India.
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