In what marks one of its most significant retail model overhauls in years, Apple is preparing to roll out a broad new device leasing initiative called “Apple Upgrade” on July 28th.
Partnering with Swedish financial tech company Klarna Group Plc, the tech giant will allow U.S. customers to lease most models of iPhones, Macs, iPads, and Apple Watches with low monthly installments, expanding hardware subscriptions far beyond its traditional phone-only offerings.
Key Details of the ‘Apple Upgrade’ Program
• Partner Bank: Klarna Group Plc (soft credit check required)
• Supported Hardware: Select iPhones, Macs, iPads, and Apple Watches
• Lease Durations
– 24 months: iPhones & Apple Watches
– 36 months: Macs & iPads
• End-of-Term Options: Upgrade early, pay off balance to own, continue monthly payments, or return device
• Notable Exclusions: Apple Watch SE, entry-level iPad, iPhone 16, MacBook Neo
• Protection Plan: AppleCare+ not bundled (available as an optional add-on)
A Broader Reach Across Apple’s Hardware Ecosystem
For over a decade, Apple’s hardware installment options were anchored by its legacy iPhone Upgrade Program, launched in September 2015 in partnership with Citizens Bank. However, that program was restricted strictly to iPhones and bundled AppleCare+ into every plan.
Under the new arrangement with Klarna, Apple aims to address softening hardware demand and recent supply-chain cost spikes by softening the upfront price tag across almost its entire lineup. Customers will no longer be limited to mobile devices; for the first time, high-end MacBooks and iPads can be structured as multi-year leases directly through Apple Stores and the Apple Online Store.
Trade-Offs and Exclusions
While the new leasing options make expensive hardware more accessible, the service is said to come with a few notable catches:
• No Bundled AppleCare+: Unlike the legacy iPhone Upgrade Program, base monthly payments on Apple Upgrade will only cover the hardware cost. Users wanting theft, loss, or damage coverage must purchase AppleCare+ separately.
• Entry-Level Exclusion: According to reports, Apple is intentionally excluding lower-priced budget devices—such as the Apple Watch SE, base-model iPad, older-generation iPhone 16, and MacBook Neo—to encourage buyers toward mid- and high-tier hardware.
• Sunsetting the Old Guard: With Apple Upgrade launching, Apple plans to stop accepting new enrollments for the original iPhone Upgrade Program, though existing members will be permitted to complete their current terms.
MacDailyNews Take: The new program arrives at a critical moment as average selling prices for consumer tech continue to rise. By framing flagship hardware purchases as digestible monthly subscriptions, Apple hopes to keep ecosystem upgrades steady despite broader macroeconomic pressures. Shifting the financing backend to a third-party partner like Klarna allows Apple to expand leasing across nearly its entire hardware portfolio without taking the credit risk directly onto its own balance sheet.
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