Summary (tl;dr)

Apple has replaced its long-standing iPhone Upgrade Program with a new, broader leasing initiative called "Apple Upgrade," in partnership with Klarna, allowing customers in the United States to lease various Apple devices, including iPhones, Macs, iPads, and Apple Watches.

Essential Background

The previous iPhone Upgrade Program allowed customers to finance an iPhone with AppleCare+ over 24 months through Citizens One, offering the flexibility to upgrade to a new iPhone after 12 monthly payments by trading in their current device. This program was designed to give users access to the latest iPhone models annually with predictable monthly costs.

The Full Story

As of July 28, 2026, Apple officially launched "Apple Upgrade," a new product leasing program in the United States, in collaboration with Klarna. This new program expands its scope beyond just iPhones to include Apple Watch, Mac, and iPad, offering flexible 12- to 36-month lease terms. Customers can choose to upgrade their device, purchase it with a one-time payment, or return it and exit the program at the end of their lease. With the introduction of "Apple Upgrade," the original iPhone Upgrade Program and iPhone Payments are being discontinued for new enrollments in the United States. Existing iPhone Upgrade Program customers will have options to transition to the new leasing program, Apple Card Monthly Installments, or carrier financing when they are eligible for a new device. This significant change comes as Apple is also preparing for the launch of its new iPhone 18 Pro models in September 2026, which are expected to include advanced features requiring newer hardware. Unlike the previous program, AppleCare+ is not automatically included with the "Apple Upgrade" lease and must be purchased separately.

Why It Matters

This shift from a financing model to a leasing model fundamentally changes how consumers acquire Apple products, potentially offering lower initial monthly payments and broader access to the Apple ecosystem across multiple device categories. However, customers do not inherently own their devices at the end of the lease term unless they choose to purchase them, a departure from the previous financing structure. The exclusion of AppleCare+ as a default inclusion also means customers need to consider additional costs for device protection. This strategy by Apple, particularly in anticipation of new, potentially higher-priced iPhone 18 Pro models, aims to secure recurring revenue, enhance customer retention, and manage product cycles by making it easier for users to regularly upgrade to the latest technology.

Geographic Location

• Cupertino, California, United States (Apple's announcement of the new "Apple Upgrade" program and discontinuation of the "iPhone Upgrade Program")