Apple Upgrade is Apple’s new hardware leasing program for customers who want an iPhone, iPad, Mac or Apple Watch without buying the device outright on day one. Launched in the United States on 28 July 2026 and provided by Klarna, it offers fixed lease terms, monthly payments and a choice at the end: upgrade, buy the device or return it.
The idea sounds simple, but leasing is not the same as financing a purchase. Here is how the Apple Upgrade program works, which devices and terms are available, and what customers should check before signing up.
What is the Apple Upgrade program?
According to Apple’s official announcement, Apple Upgrade is available through the US Apple Store online, the Apple Store app and physical Apple Store locations. Klarna handles eligibility, credit approval, payments and lease management.
Apple offers 12- and 24-month leases for iPhone and Apple Watch. Mac and iPad leases come with 24- or 36-month terms. Advertised starting prices are US$17.99 per month for iPhone, US$11.99 for Apple Watch, US$24.99 for Mac and US$11.99 for iPad, although the actual amount depends on the model, configuration, term and any eligible trade-in.
This is a US-only launch. Apple has not announced availability for Australia or other markets, so Australian readers should not assume the same pricing or program will arrive locally.
How Apple Upgrade works
1. Choose a supported device and lease term
Customers select an eligible iPhone, Apple Watch, Mac or iPad, then choose Apple Upgrade at checkout. Not every product is included: Apple says iPhone 16 and 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16) and Studio Display are excluded at launch.
2. Apply through Klarna
The application uses a soft credit inquiry, which Apple says does not affect the applicant’s credit score. Approval is not guaranteed and remains subject to eligibility and credit approval. Successful applicants manage their billing schedule and remaining payments in the Klarna app.
3. Lower the monthly amount with a trade-in
An eligible device can be traded through Apple Trade In when first enrolling. Its value can reduce the lease payments, but customers should compare the trade-in offer with the device’s potential resale value before deciding.
4. Decide what happens at the end
At the end of the term, customers can return the device and leave, return it and start a new lease on a newer model, or make a one-time payment to purchase it. Upgrading requires a new lease, a new eligibility decision and return of the previous device.
Apple Upgrade versus buying or financing
The key difference is ownership. With a conventional purchase or instalment plan, payments normally lead to owning the product. Under Apple Upgrade, the device remains leased unless the customer chooses and pays the purchase amount.
Leasing may suit people who regularly replace their devices and value predictable monthly costs. Buying can be better for someone who keeps an iPhone or Mac for several years, wants to sell it later, or prefers not to manage return-condition requirements.
Before accepting a lease, review the full agreement rather than focusing only on the monthly figure. Compare the total payments, end-of-term purchase amount, early-exit obligations, eligible return condition and the cost of adding protection. AppleCare is optional rather than automatically included.
What happened to the iPhone Upgrade Program?
Apple says it will no longer offer new US enrolments in the iPhone Upgrade Program or iPhone Payments following the Apple Upgrade launch. Existing members can continue their remaining payments. When eligible for their next iPhone, they can consider Apple Upgrade, Apple Card Monthly Installments, carrier financing or an outright purchase.
The change also broadens the upgrade concept beyond iPhone. Customers can now lease selected iPad, Mac and Apple Watch models under the same program, although product-specific terms differ.
Why it matters for Apple users
Apple Upgrade gives frequent upgraders another route to current hardware, but the lower-looking monthly payment reflects a lease rather than automatic ownership. That distinction matters when comparing value.
- Frequent upgraders: A planned return and new lease may be convenient.
- Long-term owners: Buying may offer better value if the device stays useful for years.
- Trade-in users: Applying trade-in value can lower payments, but it also gives up an owned asset immediately.
- Apple Card users: Eligible US customers can earn 3% Daily Cash on lease payments made with Apple Card.
- Careful budgeters: The total obligation and end-of-term options matter more than the headline monthly price.
Apple users should also keep software current after choosing new hardware. Our recent iOS 26.6 security update guide explains why the latest fixes matter, while the iOS 27 beta 4 guide covers Apple’s next-generation software for testers.
Should you use Apple Upgrade?
Apple Upgrade is worth considering if you live in the US, prefer regular hardware changes and understand that you are leasing. It is less compelling if your goal is to own a device cheaply and keep it well beyond the term.
Compare Apple Upgrade with an outright purchase, carrier offers and available financing. Check the full Klarna agreement for your exact configuration, and consider backing up and securely erasing any device before a trade-in or return.
Final thoughts
Apple Upgrade makes leasing more visible across Apple’s major hardware categories. Its flexibility is the main attraction, but informed customers should look beyond the monthly price and understand ownership, return and purchase choices. For now, the program is limited to eligible US customers, with no confirmed Australian launch.
FAQs
Is Apple Upgrade available in Australia?
No. Apple announced the program for the United States, and there is currently no confirmed Australian availability.
Do you own the device after making all lease payments?
Not automatically. At the end of the lease, you can return it, begin a new lease with an upgrade, or make the specified one-time payment to buy it.
Does Apple Upgrade include AppleCare?
No. AppleCare can be added separately as an optional subscription, subject to the available coverage and terms.
Does applying affect your credit score?
Apple says the application uses a soft credit inquiry that does not affect the applicant’s credit score. Eligibility and approval are still required.
Which products can be leased?
Selected iPhone, Apple Watch, Mac and iPad models are eligible. Some devices are excluded, so confirm availability for the exact product at checkout.
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