Apple has introduced a new leasing option called Apple Upgrade, giving U.S. customers a more affordable way to use an iPhone without paying the full price upfront. The company has partnered with Klarna to offer monthly payments starting at $17.99 per month for selected iPhone models.
This new Apple Upgrade leasing program could make premium Apple devices easier to access, especially as device prices continue to rise.
How the Apple Upgrade Leasing Program Works
Customers can apply for the program through Apple retail stores or the Apple online store. After a soft credit check, they can choose a one-year or two-year lease for an iPhone.
Apple is also expanding the program to other devices:
- Apple Watch: leasing available
- Mac and iPad: two-year or three-year lease options
At the end of the lease period, customers have three choices:
- Return the device
- Pay an additional amount to buy it
- Upgrade to a newer model
No security deposit is required, which makes the process simpler for many users.
Why Apple Is Introducing This Program
Apple has recently increased prices for several products, including some iPad and Mac models. Analysts also expect future iPhone models to become more expensive because of higher memory and component costs.
By focusing on lower monthly payments, Apple can make expensive devices feel more affordable. This approach is similar to what many mobile carriers already do with installment plans.
For readers interested in Apple’s latest device pricing strategies, you can also check our Apple product pricing updates section.
Apple Upgrade vs Previous iPhone Upgrade Program
Here is a simple comparison:
| Feature | Apple Upgrade | Previous iPhone Upgrade Program |
|---|---|---|
| Starting monthly price | $17.99 | $42+ |
| Financing partner | Klarna | Citizens Bank |
| Lease duration | 1 or 2 years | 24 installments |
| Device return required | Yes | No |
| AppleCare included | Not included | Included |
The new program is cheaper per month, but it works as a lease, so the device must be returned unless the customer chooses to purchase it later.
What About Premium iPhone Models?
Monthly payments increase for higher-end devices. For example:
- iPhone 17 Pro: $31.99 per month for 24 months
- iPhone 17 Pro: $45.99 per month for 12 months
Some entry-level products, such as the iPhone 16 and MacBook Neo, are not part of the program.
Benefits of Leasing an iPhone
The Apple Upgrade leasing program offers several advantages:
- Lower upfront cost
- Easier access to premium iPhones
- Option to upgrade more frequently
- No large down payment
- Available both online and in stores
This could be especially useful for users who like having the latest iPhone every couple of years instead of keeping the same device for four years or more.
Final Thoughts
The Apple Upgrade leasing program is a significant change in Apple’s financing strategy. With payments starting at $17.99 per month, Apple is clearly trying to make newer iPhones more accessible while encouraging customers to upgrade more often.
For users who prefer lower monthly payments and regular upgrades, this new leasing option may be more attractive than buying an iPhone outright. However, those who want to own their device permanently should carefully compare the total long-term cost before choosing the lease option.
