Apple has launched a major new program that lets customers lease its hardware on monthly payments instead of buying outright, positioning the company more firmly as a subscription-driven business.
On July 28th, Apple introduced Apple Upgrade in the United States, a Klarna-backed leasing service available online and in Apple Stores. It replaces the older iPhone Upgrade Program and extends subscription-style access across most iPhones, iPads, Apple Watches, and Macs.
How it works
Customers choose lease terms of 12 or 24 months for phones and watches, or 24 or 36 months for tablets and computers. Starting prices are roughly:
• iPhone: from about $17.99–$18 per month
• Apple Watch and iPad: from about $11.99–$12 per month
• Mac: from about $24.99–$25 per month
Exact amounts vary by model, configuration, and term length. Higher-end devices cost more (for example, certain MacBook Pros start in the high $30s to $50s range). A soft credit check is required. Trade-ins can lower monthly payments, and Apple Card users may earn Daily Cash on payments.
At the end of the term, users can upgrade to a newer device, pay a one-time fee to keep the current one, or return it. Early upgrades, early payoffs, or terminations can incur extra fees. AppleCare is not included and must be purchased separately. Some lower-cost models (such as the Apple Watch SE, entry-level iPad, certain older iPhones, and the MacBook Neo) and business/education purchases are excluded.
Why it matters
The program arrives as Apple’s services business continues to grow strongly and as hardware prices have risen amid industry-wide memory and storage shortages driven by AI demand, Bloomberg News‘ Mark Gurman notes in his most-recent newsletter. By partnering with Klarna, Apple offers lower monthly outlays and easier access to the latest devices without taking on the full financing risk itself.
This move answers a long-standing question about Apple’s next growth phase. Combined with its existing software and media subscriptions (now totaling well over a billion paid subscriptions across Apple services and App Store apps), Apple Upgrade pushes the company closer to a full hardware-plus-services subscription model. Customers stay in the ecosystem longer, upgrade more frequently, and generate recurring revenue rather than one-time hardware sales.
In short, Apple is no longer just selling products, it’s increasingly selling ongoing access to them. The new leasing program is the clearest signal yet of that strategic shift.
MacDailyNews Take: Apple just made the smartest move in years. By turning hardware into a true subscription via Apple Upgrade + Klarna, Cupertino locks customers into the ecosystem, smooths out lumpy iPhone cycles, and rakes in predictable revenue while competitors still chase one-time sales. Yet, if you still want to buy outright, you can! Welcome to the optional Apple-as-a-Service era.
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The old Apple iPhone Upgrade Program was interest-free. I have yet to hear if this new Lease program will be is an “interest” free lease (Leases don’t call their “LeaseRate”, interest). Anyone know?
welcome to 2026 😂
bad idea. this is the trump business plan.
apple must know prices cannot continually go up just because it’s a new year.
lower the price of your good or service you will sell more.
plus as long as trump is in office is makes it impossible to intro a new product.
trump is such a media hound no attention would be paid to a new product.
everything TRUMP touches FAILS.
racism is a company killer. perception is everything. the world noticed that gold gift that never should have happened because it was illegal to do. look, in trump’s world of business you are to buy your influence. kick backs are the way business is done in the real world. that sucks. apple apparently wants to sell 7000 to 12,000 dollar computers. not going to happen with the general buying public. m7 with 256, 512, terabyte ram, if it is faster than nvidia chips, that’s a big value but also big money.
why build a product nobody can afford? benz, bmw, 500K house luxury goods. apple, yeah. wrong direction in price. amd, intel, qualcom, all they need is a descent operating system. the speed will come.
WTF are you ranting about? Leasing is racist? To the left…everything is.
I wish you would add Melania and Barron to your guilt train. They may be in the background, but they’re obviously involved in the “business plan” and “racism.”
Be fair.
F u Apple. Your little gravy train will dry up eventually.
Insane to believe you’d be LEASING YOUR PHONE after the fall of BlackBerry and Nokia products. You have a duopoly between Google and Apple. It will be broken REGION by REGION.
Why is MDN talking about this now like Apple has made hardware a service? For now, this is an additional option. Not that I trust Apple to keep it that way, but just because they’re adding the option does not mean the business is “shifting.” I, for my part, will become a Linux user if that shift actually happens.
Companies INCREASINGLY change their business to the low-capital, high margin insurance company annuity model. Get the customer on a payment plan and most shrug off new-bill renewals with a another payment yr after yr.
Berkshire Hathaway’s (Buffet/Munger’s) success was fortified greatly by this model…purchasing Geico became one of their top gold mines.