Apple today launched Apple Upgrade, a US leasing program for iPhone, iPad, Mac, and Apple Watch provided by Klarna. It replaces the iPhone Upgrade Program and iPhone Payments, both of which Apple has stopped offering to new customers as of today.
Leases run 12 or 24 months for iPhone and Apple Watch, and 24 or 36 months for iPad and Mac. Base pricing starts at $17.99 per month for iPhone, $11.99 for Apple Watch, $11.99 for iPad, and $24.99 for Mac. A trade-in at enrollment lowers the monthly payment, with the credit spread across the initial term.
Apple's sample pricing, before tax and trade-in credit:
- iPhone 17 Pro 256GB ($1,099) — $31.99/mo on a 24-month lease, $45.99/mo on 12 months
- Apple Watch Series 11 42mm ($399) — $11.99/mo on 24 months, $21.99/mo on 12 months
- 11-inch iPad Pro 256GB ($1,199) — $24.99/mo on 36 months, $31.99/mo on 24 months
- 14-inch MacBook Pro 16GB ($1,999) — $38.99/mo on 36 months, $53.99/mo on 24 months
Applications run through Klarna at checkout, online or in-store, and involve a soft credit check that does not affect your credit score. Approval is near-instant for eligible applicants. Billing schedules and remaining payments live in the Klarna app.
What happens at the end
Three options: return the device and leave, return it and start a new lease on a newer model, or pay the purchase option fee and keep it. That fee is the retail price minus what you have already paid, minus any leftover trade-in credit — Klarna adds no financing charge on top, so a $1,099 iPhone still totals $1,099 plus tax if you buy it outright. Returns ship back in a prepaid box, or you can drop the device off at an Apple Store. If you do not pay the fee, you do not own the device.
Miss the deadline entirely, and the lease rolls to month-to-month for up to six months, after which Klarna charges the purchase fee automatically. Payments hold steady during that window unless a monthly trade-in credit was propping them up — that credit expires with the initial term.
The fine print
Ending a lease early means paying out the remaining months in full; Apple calls the charge substantial, and it scales with how much time is left. Paying off early carries no penalty.
Klarna assesses device condition on return. With AppleCare+, you pay the standard service fee for damage; without it, you pay the full assessed cost. AppleCare is not bundled into the lease price, and you have 60 days after enrollment to add it, or you can fold the device into an AppleCare One plan.
A missed payment rolls into the following month with no late fee. Three consecutive misses terminate the agreement, at which point the full outstanding balance comes due minus the returned device's value, and unpaid accounts go to Klarna's collections partners. Klarna support offers a one-month deferral and an early-termination repayment plan.
Eligibility and exclusions
Applicants must be 18 or older, US residents outside the territories, with a valid SSN or ITIN, an Apple Account in good standing, a Klarna account, and an accepted credit or debit card. Amex, UnionPay, and cards issued by Chase or Capital One are not accepted. Apple Pay and PayPal are not supported for lease payments, though Apple Card users earn 3% Daily Cash on them.
Leasing an iPhone requires a postpaid line with AT&T, T-Mobile, or Verizon. MVNOs like Mint Mobile and Visible do not qualify, though the phone ships unlocked and can be moved later.
Not eligible: iPhone 16 and 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16), and Studio Display. Leases are also unavailable on refurbished stock, with education pricing, or through employee, corporate, government, veteran, and military purchase programs.
Existing iPhone Upgrade Program members can keep paying off their current device, but will need to move to Apple Upgrade, Apple Card Monthly Installments, carrier financing, or an outright purchase next time around.