Apple Launches Hardware Leasing Program with Klarna, Ending iPhone Upgrade Option
Apple launched Apple Upgrade, a hardware leasing program across its U.S. retail stores, website, and mobile app. The program operates in partnership with financial technology provider Klarna. Customers can lease iPhones, iPads, Macs, and Apple Watches under monthly payment terms.
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| Credit: Apple |
The release expands monthly payment choices beyond smartphones to include laptops, tablets, and wearables.
New sign-ups for the legacy iPhone Upgrade Program and iPhone Payments options ended with this release.
Karen Rasmussen, Apple's vice president of the Apple Store online, described the objective of the program:
"At Apple, we put the customer at the center of everything we do, 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."
Klarna manages credit evaluations and payment processing for all Apple Upgrade leases.
Applicants undergo a soft credit check during online or in-store checkout.
The soft credit inquiry leaves credit scores unchanged.
Enrolling customers can submit trade-in devices to lower their monthly lease rate.
Apple Card holders receive three percent Daily Cash back on monthly payment amounts.
Leasing terms and pricing structures vary by product category.
iPhones and Apple Watches offer 12-month and 24-month lease terms. Macs and iPads offer 24-month and 36-month lease terms.
Starting prices begin at $11.99 per month for Apple Watch and iPad models.
iPhone leases begin at $17.99 per month, and Mac leases begin at $24.99 per month.
An iPhone 17 Pro requires $31.99 per month on a 24-month lease.
iPhone lease agreements require activation through AT&T, T-Mobile, or Verizon.
The program excludes prepaid mobile network plans.
Customers select one of three choices when a lease agreement finishes.
- They can turn in the old device and lease a new model.
- They can turn in the device and close their account without taking new hardware.
- They can buy the hardware outright by paying the remaining balance through Klarna.
Apple provides prepaid shipping boxes for returning devices by mail.
Customers can also hand in leased devices directly at Apple retail locations.
Klarna assesses damage fees if hardware lacks AppleCare protection and returns in damaged condition.
The rollout closes new enrollments for the decade-old iPhone Upgrade Program and iPhone Payments plans.
Apple issued a statement regarding the transition for existing customers:
"With the launch of Apple Upgrade, Apple will no longer offer the iPhone Upgrade Program and iPhone Payments in the United States. When eligible, customers currently enrolled in the iPhone Upgrade Program will have the option of leasing a new device with Apple Upgrade, financing with Apple Card Monthly Installments, purchasing the product outright, or choosing carrier financing."
Active loans with Citizens One through the previous program remain valid until users finish their 24-month terms.
Those users retain ownership of their current iPhones after paying their active contracts.
Once eligible for an upgrade, existing users must select from the current payment methods.
