On July 28, 2026 (Beijing time), Apple announced the launch of Apple Upgrade in the United States, a device leasing program provided by Klarna for eligible consumers. The plan covers certain iPhone, Apple Watch, Mac, and iPad models and can be processed on the Apple Store website, Apple Store app, or at U.S. retail stores. Apple's official announcement clearly states that this is a consumer lease, not a purchase or loan; customers will not automatically own the device at the end of the lease term. Karen Rasmussen, vice president of Apple Online Stores, described the program as a more flexible payment option both online and in-store. Apple says approved customers can take devices directly from stores, while online customers can choose delivery or store pickup.
U.S. Scope and Lease Terms
The plan is only available to eligible U.S. residents and does not include residents of U.S. territories. Leased devices must be shipped to an eligible U.S. address or picked up at a U.S. Apple retail store; Apple has not announced plans for availability outside the United States. The application scope is subject to both residency qualifications and delivery location restrictions, so access to the U.S. website does not imply that overseas consumers can apply. Apple also lists some products that are not participating in the program, meaning “covering four categories of devices” does not mean every model on sale can be leased.
Eligible iPhone and Apple Watch models can choose 12 or 24-month lease terms; Mac and iPad models can choose 24 or 36 months. The advertised monthly payment starting prices are $17.99, $11.99, $24.99, and $11.99 for iPhone, Apple Watch, Mac, and iPad respectively. Actual payments depend on the specific device and lease term and can be affected by taxes and trade-in values; advertised amounts do not necessarily include old device valuations and cannot determine full-term payments, deferred payments, or final buyout fees.
Payment Examples and Application Conditions
Apple's examples show that a 256GB iPhone 17 Pro priced at $1099, without taxes and trade-ins, has monthly payments of $31.99 for 24 months or $45.99 for 12 months. A 11-inch 256GB iPad Pro priced at $1199 corresponds to monthly payments of $24.99 for 36 months or $31.99 for 24 months; a 14-inch 16GB MacBook Pro priced at $1999 corresponds to monthly payments of $38.99 for 36 months or $53.99 for 24 months. These three sets of numbers are illustrative examples and not uniform quotes for all devices; the sum of each period's monthly payments cannot determine ownership at the end of the lease term, as buyout still requires additional payment, which is not listed in the announcement.
Applications are subject to qualification and credit approval by Klarna, including a soft credit check that does not affect credit scores. Applicants must be of legal age according to their state's laws, have an active Social Security number or Individual Taxpayer Identification Number, accepted credit or debit cards, an active Apple account and Klarna account, and the ability to receive security codes via SMS. The first monthly payment is due approximately 30 days after shipment or availability for pickup; approval depends on qualification and credit status.
End of Lease Term and Cost Boundaries
At the end of the initial lease term, customers can sign a new lease agreement to exchange their current device for a new one, pay an ownership fee to keep the current device, or return it to exit the plan. Exchanging requires a new lease agreement, returning the old device, and passing qualification and credit checks again; approval is not guaranteed. Without paying the buyout fee, customers will not own the device. Trade-ins may reduce monthly payments, and eligible Apple Card rental payments can earn 3% Daily Cash, subject to qualifications and terms.
If a customer does not renew, terminate, or buy out at the end of the initial lease term, the lease can be extended for up to six months on a month-to-month basis with potentially higher monthly payments; if no action is taken after this extension period, Klarna will charge the buyout fee according to the lease agreement. Early termination may incur high fees. The lease does not include insurance, and loss, theft, or damage beyond acceptable return conditions can result in repair costs. Apple's announcement does not provide a buyout fee table, early termination fee amounts, or residual value calculation methods for different devices.
Old Program Exit and Motive Attribution
Apple states that after the launch of Apple Upgrade, it will no longer offer the iPhone Upgrade Program and iPhone Payments in the U.S. Eligible users from old programs can still choose new leasing plans, Apple Card monthly installments, one-time purchases, or carrier financing. Leasing iPhones requires choosing AT&T, T-Mobile, or Verizon; pre-paid packages are not available. Apple says leased iPhones remain unlocked, allowing customers to switch carriers under compliance with carrier terms.
The reasons for launching the program vary between sources: Apple's official announcement only describes it as a more flexible payment option, while TechCrunch’s brief summary separately mentions industry-wide memory chip shortages and hardware price increases. The latter is background provided by media and cannot be attributed to confirmed motives from Apple. Existing materials do not disclose total cost comparisons with cash purchases or Apple Card monthly installments, revenue sharing between Apple and Klarna, default rates, sales targets, or expansion timelines outside the U.S. Subsequent judgments should rely on buyout fees, extension terms, and termination clauses in specific lease agreements.