Apple is preparing to launch a new leasing service called Apple Upgrade, which allows customers to finance iPhones, Macs, iPads, and Apple Watches through monthly payments. This shift matters because it replaces the legacy iPhone Upgrade Program and expands financing options to a broader range of hardware. Buyers who prefer not to pay the full retail price upfront will have a structured path to upgrade their devices every few years. The program represents a shift in Apple's approach to device ownership and recurring revenue.
Unified leasing ecosystem replaces legacy iPhone program with Klarna
The new service is powered by Klarna and requires a soft credit check before approval. According to Bloomberg, Apple is expected to offer this option starting July 28, 2026, initially available in the U.S. The program replaces the older iPhone Upgrade Program, which was limited primarily to iPhones. Apple Upgrade extends this financing model to include Macs, iPads, and Apple Watches, creating a unified leasing ecosystem for the entire product line.
- Lease Term (iPhone/Apple Watch): 24 months
- Lease Term (Mac/iPad): 36 months
- Credit Check: Soft credit check required
- Insurance Coverage: Not included
- Excluded Models: iPhone 16, iPad, MacBook Neo, Apple Watch SE
Lease terms differ by device category, with iPhones and Apple Watches set to a 24-month term. Macs and iPads carry a longer 36-month lease term. The lease does not include insurance coverage, meaning customers remain liable for payments even if devices are lost or defective. A soft credit check is required before you can lease a product, ensuring eligibility without impacting credit scores significantly.
Lower-priced models are reportedly excluded from the program, including the iPhone 16, the iPad, the MacBook Neo, and the Apple Watch SE. The exclusion of lower-priced models indicates a focus on premium devices for the leasing program. Customers must commit to the full lease term and continue payments regardless of device condition. The program structure prioritizes higher-end hardware over entry-level options.
Source: NotebookCheck
