Apple has launched a new US leasing Program called Apple Upgrade, with Klarna handling the payment structure and monthly plans starting at $17.99 for iPhone. Apple Upgrade Program covers Apple Watch, Mac and iPad, and it is available through the online store, the Apple Store app and Apple retail locations in the United States.
Apple Upgrade is a new product leasing Program powered by Klarna for iPhone, Apple Watch, Mac and iPad. The offer is intended to give customers a more flexible way to pay for devices, with a simplified enrolment process and support both online and in-store.
“At Apple, we put the customer at the center of everything we do,” said Karen Rasmussen, Apple’s vice president of the Apple Store online, “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.”
Apple says monthly lease rates start at $17.99 for iPhone, $11.99 for Apple Watch, $24.99 for Mac and $11.99 for iPad.
The lease terms are 12 or 24 months for iPhone and Apple Watch, and 24 or 36 months for Mac and iPad.
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How the Klarna-backed programme works
Apple says customers can apply in minutes, online or in store, and that Klarna will provide a soft credit inquiry. Apple also says customers may lower monthly payments by trading in an existing device through Apple Trade In. Lease payments made with Apple Card earn 3% Daily Cash back.
At the end of the lease, customers have three choices: upgrade to the latest generation, buy the device with a one-time payment, or return it and leave the Program. Apple also says customers can manage lease information inside the Klarna app, including billing and remaining payments.
What changes for Apple customers
Apple says it will no longer offer the iPhone Upgrade Program and iPhone Payments in the United States. Existing eligible customers in those programmes will be able to move to Apple Upgrade, finance with Apple Card Monthly Installments, buy outright or use carrier financing.
It is a replacement model for Apple’s earlier US iPhone-only upgrade path, and it expands the framework to include Mac, iPad and Apple Watch.
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Why this matters
Apple is moving closer to a device-access model rather than a pure ownership model. That matters because monthly payments are easier for many customers to compare than a full upfront price, especially when premium device prices keep climbing.
Apple’s Apple Upgrade Program structure also makes the upgrade cycle clearer: use the device, decide at term-end whether to return, purchase or roll into a newer model.
By combining Apple’s sales channels with Klarna’s financing workflow, Apple reduces friction at the point of sale. Customers do not need to start the process in one place and finish it in another.
Compared with the old iPhone Upgrade Program, the new Apple Upgrade system is broader, more formalised and more explicitly tied to leasing terms across multiple product lines. The earlier Program was centred on iPhone; the new one spans iPhone, Apple Watch, Mac and iPad, and it replaces Apple’s previous US iPhone financing options for new enrolments.
Entry costs are lowest for iPad and Apple Watch, while Mac starts higher at $24.99 a month. In news terms, that is a signal that Apple is not treating all devices the same; it is mapping each product line to a separate lease rhythm and price point.
Apple has given the US market another way to get into its Apple hardware without paying full price upfront.
