Apple has fundamentally changed how consumers in the United States can acquire its hardware. The company has officially announced Apple Upgrade, a brand-new hardware leasing subscription program. With this launch, Apple is permanently retiring both the iPhone Upgrade Program and iPhone Payments in the US market.
Instead of a traditional zero-interest installment loan, Apple Upgrade operates much closer to a car lease. You pay a reduced monthly subscription fee to use the device for a set period, and at the end of the term, you decide whether to return it, upgrade it, or buy it out.
Here is your complete PFD breakdown of the new pricing tiers, the subscription terms, and the crucial caveats you need to know before signing up.
How the Program Works
Apple has partnered with buy-now, pay-later firm Klarna to provide the financial backing for the program.
- Customers can apply for a lease directly through the Apple Store online, the Apple Store app, or in physical Apple Store locations across the United States.
- The application process requires a soft credit inquiry.
- This soft credit check will not impact your overall credit score.
Monthly Subscription Pricing and Terms
Apple Upgrade expands the leasing model far beyond just smartphones, allowing users to rent hardware across the entire ecosystem. The terms and pricing vary heavily depending on the product category.
- iPhone: Leases for the iPhone are available in 12- and 24-month terms. Monthly payments start as low as $17.99. As an example, leasing a $1,099 iPhone 17 🏆 Pro (256GB) costs $31.99 per month on a 24-month term, or $45.99 per month on a 12-month term.
- Apple Watch: You can lease an Apple Watch on a 12- or 24-month schedule. Base pricing starts at $11.99 per month. For context, a $399 Apple Watch Series 11 🏆 GPS (42mm) costs $11.99 per month at 24 months, and $21.99 per month at 12 months.
- iPad: iPad leasing options utilize longer 24- and 36-month terms. iPad leases start at $11.99 per month. If you choose a $1,199 11-inch iPad Pro (256GB), expect to pay $24.99 per month for 36 months, or $31.99 per month for 24 months.
- Mac: Mac computers are also offered on 24- and 36-month terms. These leases start at $24.99 per month. Leasing a $1,999 14-inch MacBook Pro (16GB) runs $38.99 per month at 36 months, and $53.99 per month at 24 months.
What Happens at the End of the Lease?
Because this is a true leasing structure, you do not automatically own the device once the term ends. After your lease period concludes, you have three distinct options:
- Return your current device, upgrade to a new generation, and renew the lease.
- Buy the device outright with a one-time payment to keep it permanently.
- Simply return the device and exit the program entirely.
PFD Verdict: What’s the Catch?
While the lower monthly payments look incredibly attractive compared to standard retail financing, there are two major omissions you must consider before ditching your current payment plans.
- No AppleCare Bundled: Unlike the retiring iPhone Upgrade Program, Apple Upgrade does not bundle AppleCare+ into the monthly cost.
- Hardware Exclusions: The program is restricted to higher-end models. This means entry-level devices like the Apple Watch SE, the entry-level iPad, the base iPhone 16, and the MacBook Neo are entirely excluded from the program.
If you are a power user who upgrades to the “Pro” lineup every one or two years, Apple Upgrade is a highly streamlined way to lower your monthly tech overhead. However, if you typically keep your devices for four to five years, standard purchasing remains the smarter financial route.
Tags: Apple Upgrade program, iPhone lease subscription, lease a MacBook, Klarna Apple financing, tech news US
