Apple Launches Subscription Leasing Service in US, Replacing iPhone Upgrade Program
The US-based subscription model replaces standard financing options and the long-running iPhone Upgrade Program, with monthly fees starting from $11.99.
Apple has introduced Apple Upgrade, a new subscription-based leasing service available in the United States, allowing consumers to access iPhones, iPads, Apple Watches and Macs for a recurring monthly fee. Operated in partnership with Klarna, the programme replaces the existing iPhone Upgrade Program and standard financing options for new enrollees, though current participants in the previous scheme remain grandfathered in and are not required to switch.
Monthly pricing begins at $17.99 for iPhones, $11.99 for both Apple Watches and iPads, and $24.99 for Macs. The service requires credit approval through Klarna, which also provides a dedicated application for managing payments and lease details. While Klarna was previously available as a buy-now-pay-later option within Apple Pay, this new structure formalises the leasing arrangement under a subscription model.
Lease terms are set at 24 months for iPhones and Apple Watches, and 36 months for iPads and Macs. At the conclusion of the term, customers may upgrade to a newer model, purchase the device outright with a one-time payment, or return it to an Apple store. Early payoff is permitted for an additional fee, and AppleCare+ coverage can be added to the lease agreement, although it is not included by default.
The programme excludes several specific models, including the iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16) and Studio Display. Apple reportedly considered a similar subscription offering as recently as 2024 but abandoned the concept due to financial oversight concerns before finalising the partnership with Klarna.
The launch follows recent price increases for many iPad and Mac models, with market expectations that upcoming iPhone models, anticipated in September, will also see higher price points. The new service debuts as the company shifts towards recurring revenue streams for hardware access in the US market.
