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Apple Launches Apple Upgrade Leasing Program with Klarna, Set to Replace Existing Financing Options
Apple will roll out a new leasing program, dubbed Apple Upgrade, on July 28, 2026 across U.S. retail stores and its online shop. The initiative is a partnership with Swedish fintech firm Klarna Group, and it lets customers spread the cost of a device over a fixed monthly fee. After the lease ends, users may pay off the balance early, swap for a newer model, or keep the hardware.
Apple Upgrade is built around a car‑lease model. Prospective customers must clear a soft credit check before enrolling. The terms differ by product: iPhones and Apple Watches come with 24‑month contracts, while Macs and iPads are offered on 36‑month plans. Early payoff or an early upgrade can trigger an additional fee. At the lease’s conclusion, the device can be returned, retained, or traded for a newer model.
The program is positioned as a cheaper alternative to Apple’s current financing options. On the same day the new service launches, Apple will stop accepting new enrollments for its existing iPhone Upgrade Program and for standard credit‑card financing.
Unlike the iPhone Upgrade Program, Apple Upgrade does not bundle AppleCare coverage. Moreover, certain models are excluded outright: the Apple Watch SE, the entry‑level iPad, the upcoming iPhone 16, and the MacBook Neo are not eligible. Business and education purchases are also barred.
Apple’s timing is notable. The leasing program debuts just months before the anticipated release of a new iPhone lineup. While Apple has not confirmed which devices will be available through the new lease, the structure suggests that most flagship models will be included.
This marks Apple’s first collaboration with Klarna. The fintech partner will manage financing and credit checks, allowing Apple to concentrate on the retail and customer experience. The subscription‑style pricing is meant to make Apple devices more accessible to consumers who prefer predictable monthly payments.
Historically, Apple offered the iPhone Upgrade Program, a 24‑month lease that included AppleCare. The new Apple Upgrade expands the leasing model to Macs, iPads, and Apple Watches, and it removes the bundled AppleCare. The shift reflects Apple’s broader strategy to diversify its revenue streams and respond to evolving consumer preferences.
Initially, the program will be available only in the United States. Apple has not announced any plans for international rollout, and it is unclear whether the service will eventually cover all device models in other markets.
In summary, Apple Upgrade launches on July 28, 2026, providing a subscription‑style leasing option for iPhones, Macs, iPads, and Apple Watches. The program offers 24‑month leases for phones and watches, 36‑month leases for computers and tablets, and requires a soft credit check. Apple will cease new enrollments in its existing iPhone Upgrade Program and standard financing, and the new service will not include AppleCare. Certain devices and business or education purchases are excluded.
Apple’s next steps will involve monitoring customer uptake, evaluating the impact on flagship device sales, and deciding whether to extend the program to additional markets or device categories.
Apple Upgrade is built around a car‑lease model. Prospective customers must clear a soft credit check before enrolling. The terms differ by product: iPhones and Apple Watches come with 24‑month contracts, while Macs and iPads are offered on 36‑month plans. Early payoff or an early upgrade can trigger an additional fee. At the lease’s conclusion, the device can be returned, retained, or traded for a newer model.
The program is positioned as a cheaper alternative to Apple’s current financing options. On the same day the new service launches, Apple will stop accepting new enrollments for its existing iPhone Upgrade Program and for standard credit‑card financing.
Unlike the iPhone Upgrade Program, Apple Upgrade does not bundle AppleCare coverage. Moreover, certain models are excluded outright: the Apple Watch SE, the entry‑level iPad, the upcoming iPhone 16, and the MacBook Neo are not eligible. Business and education purchases are also barred.
Apple’s timing is notable. The leasing program debuts just months before the anticipated release of a new iPhone lineup. While Apple has not confirmed which devices will be available through the new lease, the structure suggests that most flagship models will be included.
This marks Apple’s first collaboration with Klarna. The fintech partner will manage financing and credit checks, allowing Apple to concentrate on the retail and customer experience. The subscription‑style pricing is meant to make Apple devices more accessible to consumers who prefer predictable monthly payments.
Historically, Apple offered the iPhone Upgrade Program, a 24‑month lease that included AppleCare. The new Apple Upgrade expands the leasing model to Macs, iPads, and Apple Watches, and it removes the bundled AppleCare. The shift reflects Apple’s broader strategy to diversify its revenue streams and respond to evolving consumer preferences.
Initially, the program will be available only in the United States. Apple has not announced any plans for international rollout, and it is unclear whether the service will eventually cover all device models in other markets.
In summary, Apple Upgrade launches on July 28, 2026, providing a subscription‑style leasing option for iPhones, Macs, iPads, and Apple Watches. The program offers 24‑month leases for phones and watches, 36‑month leases for computers and tablets, and requires a soft credit check. Apple will cease new enrollments in its existing iPhone Upgrade Program and standard financing, and the new service will not include AppleCare. Certain devices and business or education purchases are excluded.
Apple’s next steps will involve monitoring customer uptake, evaluating the impact on flagship device sales, and deciding whether to extend the program to additional markets or device categories.
