Apple has shut down the iPhone Upgrade Program and replaced it with a new leasing service called Apple Upgrade, backed by buy-now-pay-later company Klarna.
The program, available starting today in the U.S., extends beyond iPhones to cover iPad, Mac, and Apple Watch for the first time, with monthly payments starting at $17.99 for iPhones and $24.99 for Macs.
The move fundamentally restructures how Apple handles device financing. While the old iPhone Upgrade Program required financing through Apple Card or Citizens Bank and was limited to iPhones, Apple Upgrade now spans the product lineup and runs entirely through Klarna.
Also: 3 new iOS 27 calendar features that will make paying for Fantastical feel a whole lot less necessary
A soft credit check through Klarna determines eligibility, and approvals are instant. Lease details, payment schedules, and remaining balances are managed in the Klarna app rather than directly through Apple.
Monthly costs depend on the device and lease length. A 256GB iPhone 17 Pro, which retails for $1,099, runs $31.99 per month on a 24-month lease.
A 16GB 14-inch MacBook Pro priced at $1,999 costs $38.99 per month over 36 months. Apple Watch and iPad options start at $11.99 and $24.99 per month, respectively.
Trade-in credits further reduce monthly costs and are applied over the lease term rather than as a lump sum at signing.
No Interest, But Not Without Conditions
Klarna is not charging interest or fees on these leases. Someone who leases a $1,099 iPhone and later decides to keep it pays exactly $1,099 in total, minus any trade-in credit, plus applicable taxes.
That changes the math for buyers who would otherwise pull cash from savings or investments to buy outright.
Spreading a $2,000 MacBook Pro purchase over three years at zero interest while keeping that money in a high-yield savings account can produce a modest but real return over the lease term.
At the end of any lease, customers have three options: return the device and walk away, return it and start a new lease on a newer model, or pay the remaining balance to own the device outright.
That payoff amount is simply the difference between what has already been paid and the original retail price.
AppleCare+ is not bundled in and must be purchased separately, though Apple Card holders earn 3% Daily Cash back on lease payments made with the card.
Also: If you bought one of these iPhones, Apple could soon owe you money without you lifting a finger yet
Carrier Requirement Locks Out Some Buyers
iPhone leases come with a condition that will disqualify a portion of potential customers. Enrollment requires an active postpaid plan from AT&T, Verizon, or T-Mobile.
Prepaid plans are not eligible, and smaller carriers operating as MVNOs, including Mint Mobile and Visible, are excluded entirely.
The iPhones themselves are unlocked, so switching carriers after enrollment is allowed, but the initial signup must go through one of the three major carriers. Leases for iPad, Mac, and Apple Watch carry no carrier requirement.
Several devices are excluded from the program regardless of carrier status. The iPhone 16 and iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16), and Studio Display cannot be leased through Apple Upgrade.
Refurbished devices, education discounts, and purchases made through employee, business, government, or military programs are also ineligible.
Also: Apple’s smart glasses will have cameras that can’t record you — here’s what that means
What Happens If You Miss a Payment or End Early
Missing a single payment does not trigger a late fee. The missed amount rolls into the following month’s bill.
Three consecutive missed payments terminate the lease and require the customer to pay the full outstanding balance, minus the value of the returned device. Klarna can refer unpaid balances to debt collection if needed.
Ending a lease before the term is up carries a cost equal to the remaining payments. Someone three months from the end of a 24-month iPhone lease would owe three months of payments to exit early.
There is no penalty for paying off a lease ahead of schedule. If a customer does nothing at the end of the term, the lease converts to month-to-month billing at the same rate, with any trade-in credit no longer applied, which raises the effective monthly cost. After six months on month-to-month terms, Klarna charges the full device purchase price.
Existing iPhone Upgrade Program customers can continue making payments until their current device is paid off.
Their next purchase, however, will require switching to Apple Upgrade or another payment method. Apple Upgrade is available online and in Apple retail stores beginning today.
