If you are shopping an iPhone, Mac, iPad, or Apple Watch in the U.S. and the checkout page suddenly offers a monthly lease, that is Apple Upgrade. It is a Klarna-backed hardware lease live on the Apple Store online, in the Apple Store app, and in U.S. Apple Stores. It replaces the old iPhone Upgrade Program and iPhone Payments for new enrollments.
This is not a vibes piece about subscriptions. It is the decision math: what Apple confirmed, what you do not own, and when the monthly number is a trap.
What Apple launched
Apple Newsroom says Apple Upgrade is a product leasing program provided by Klarna for iPhone, Apple Watch, Mac, and iPad. Terms split by category:
| Product | Lease terms | Starting monthly (Apple's floor) |
|---|---|---|
| iPhone | 12 or 24 months | $17.99 |
| Apple Watch | 12 or 24 months | $11.99 |
| Mac | 24 or 36 months | $24.99 |
| iPad | 24 or 36 months | $11.99 |
Trade-in through Apple Trade In can lower the monthly payment on first enrollment. Paying the lease with Apple Card earns 3 percent Daily Cash. Approval uses a soft credit inquiry that Apple says will not impact credit score. Lease details live in the Klarna app.
Karen Rasmussen, Apple's vice president of the Apple Store online, framed it as flexibility:
At Apple, we put the customer at the center of everything we do, and we're thrilled that Apple Upgrade offers our customers, both online and in-store, a more flexible way to pay for the products they love.
End-of-term options (the part that matters)
At the end of the lease term, Apple lists three exits:
Upgrade into a new lease on a newer device (return the old one; new approval required).
Purchase the current device with a one-time payment.
Return the device and leave the program.
You do not own the hardware unless you pay the purchase fee. Apple's fine print is blunt: if you take no action after an optional month-to-month extension window, you can be charged that purchase fee. Early termination can mean substantial fees. Damage, loss, or a return that fails condition checks can add charges. AppleCare is optional and separate.
