Apple starts leasing iPhones, Macs and more

Apple is replacing its standard device financing with Apple Upgrade, a subscription program that lets US customers lease an iPhone, iPad, Apple Watch or Mac for a monthly payment rather than paying the full price upfront.

Sam Rutherford for Engadget

The program replaces the long-running iPhone Upgrade Program and standard financing. Existing iPhone Upgrade Program customers will remain grandfathered in for the foreseeable future, but Apple is no longer accepting new sign-ups.

Apple Upgrade pricing and terms

Monthly prices start at $17.99 for iPhone, $11.99 for Apple Watch and iPad, and $24.99 for Mac. Lease terms last 24 months for iPhones and Apple Watches, and 36 months for iPads and Macs.

The available lineup excludes several products: iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16) and Studio Display. Customers can also pay off a device early, though Apple will charge an additional fee.

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At the end of a lease, customers can:

• Upgrade to a newer device
• Buy the leased device with a one-time payment
• Return it to an Apple store and leave the program

Apple says upgrading or keeping a device may involve extra fees. Customers can add AppleCare to any device included in their lease agreement.

The program is operated by Klarna, which requires applicants to receive approval before joining. Klarna also provides an app for tracking payments and lease details.

Apple was reportedly considering a similar offering as recently as 2024, but is believed to have abandoned it over financial oversight concerns. Klarna was already available in Apple Pay as a buy now, pay later option.

Apple Upgrade is arriving after sharp price increases for many iPad and Mac models. The next iPhone lineup, which Apple is widely expected to reveal in September, is also expected to cost more than previous models.