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.
Money math using Apple's own examples
Apple published sample payments (excluding taxes and trade-in credit):
| Device (sticker) | Sample payment | Term | Lease total before taxes |
|---|---|---|---|
| iPhone 17 Pro 256GB ($1,099) | $31.99 / mo | 24 months | $767.76 |
| Apple Watch Series 11 GPS 42mm ($399) | $11.99 / mo | 24 months | $287.76 |
| 11-inch iPad Pro 256GB ($1,199) | $24.99 / mo | 36 months | $899.64 |
| 14-inch MacBook Pro 16GB ($1,999) | $38.99 / mo | 36 months | $1,403.64 |
Read those totals carefully. On the iPhone 17 Pro example, 24 months of leasing is $767.76 for a phone you still do not own at the end. Buying outright keeps resale value in your pocket. Leasing wins only if you value forced upgrade cadence, unlocked iPhone carrier flexibility under the lease rules, or cash-flow smoothing more than equity.
Leased iPhones are unlocked, but you must pick an eligible carrier (AT&T, T-Mobile, or Verizon) at signup and cannot use prepaid.
What dies, what stays, what is excluded
Gone for new U.S. signups: iPhone Upgrade Program and iPhone Payments.
Still on the table for eligible shoppers: buying outright, Apple Card Monthly Installments, carrier financing, or (when eligible) moving into Apple Upgrade.
Not in Apple Upgrade: iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16), and Studio Display.
Existing iPhone Upgrade Program customers keep paying their current 24-month term. When eligible, Apple says they can lease via Apple Upgrade, finance with Apple Card Monthly Installments, buy outright, or use carrier financing.
Who should lease vs who should skip
Lease if: you already swap every 12 to 24 months, you want the monthly number more than ownership, and you will keep the device mint enough to return without drama.
Skip if: you keep phones three-plus years, you care about repair freedom and resale, or the monthly payment only works because you are ignoring the missing equity. In that case buy refurbished or buy new and sell when you are done.
Where to start
Read Apple's rules on the Apple Upgrade Newsroom post, then price your exact SKU in the U.S. Apple Store before you tap approve in Klarna. Follow our tech feed for follow-ups on pricing and eligibility changes.