Buying your next Apple device could soon look like leasing a car. Apple is launching its new Apple Upgrade program on Tuesday, July 28, replacing new enrollments in the long-running iPhone Upgrade Program with a lease-based option that covers iPhones, iPads, Macs, and Apple Watches.
Backed by Klarna, the program is designed to lower the upfront cost of Apple’s premium devices, but it is also raising questions about whether you’ll actually own what you’re paying for.
How will the new Apple Upgrade work?
The new program will reportedly launch first in the United States through Apple’s retail stores and online store. Eligible iPhones and Apple Watches will be offered on 24-month leases, while Macs and iPads will be offered on 36-month leases.
You’ll make monthly payments, with the option to pay off the device early, upgrade to a newer model during the lease, or keep or return it when the agreement ends. A soft credit check through Klarna will be required before you can enroll.
Apple Upgrade is expected to replace new signups for the current iPhone Upgrade Program, although existing financing plans will continue for current customers. Unlike the older program, reports suggest that AppleCare will not be included.
The program also excludes the base iPad, iPhone 16, Apple Watch SE, MacBook Neo, and business or education purchases. The timing is interesting because it follows Apple’s recent price increase across much of its hardware and services lineup.
Why does it matter?
The biggest concern is that Apple Upgrade may work more like a traditional car lease than a financing plan. If that is the case, your monthly payments would mainly cover the device’s depreciation instead of paying off its full value.
At the end of the lease, you could be asked to return the device or make an additional payment to own it outright. Whether this ends up saving you money or just keeps you locked into an endless upgrade cycle will likely depend entirely on how you use it.
%20102026%20top%20art%20SOURCE%20Govee.jpg "The Best Permanent Outdoor Lights (2026): Govee, Eufy, Cync")