Apple has launched Apple Upgrade, a new U.S. product-leasing program offered by Klarna for eligible iPhone, Apple Watch, Mac, and iPad products.
The program is available through the Apple Store online, the Apple Store application and physical Apple Store locations across the United States.
Apple Upgrade gives customers another way to access the company’s products through monthly lease payments instead of purchasing a device outright or financing ownership through a traditional installment loan.
The offering is a consumer lease rather than a purchase or loan. Customers do not automatically own the device after making the scheduled monthly payments.
Lease terms are available for 12, 24, or 36 months, though not all terms may be offered for every product. Approval is based on eligibility and creditworthiness, with the first payment generally due approximately 30 days after the device is shipped or available for pickup.
Apple said iPhone leases start at $17.99 per month. Apple Watch and iPad leases start at $11.99, while Mac leases start at $24.99.
For example, an iPhone 17 Pro with 256GB of storage and a purchase price of $1,099 would typically cost $31.99 per month on a 24-month lease or $45.99 per month on a 12-month lease. Taxes and potential trade-in credits are excluded from those figures.
A 42mm Apple Watch Series 11 with GPS, priced at $399, would typically cost $11.99 per month over 24 months or $21.99 per month over 12 months.
An 11-inch iPad Pro with 256GB of storage and a purchase price of $1,199 would typically cost $24.99 per month for 36 months or $31.99 per month for 24 months.
A 14-inch MacBook Pro with 16GB of memory and a purchase price of $1,999 would typically cost $38.99 per month on a 36-month lease or $53.99 per month on a 24-month lease.
Apple Upgrade does not require a security deposit. Customers may trade in an eligible device to reduce their monthly payments, although advertised prices may not include the estimated value of a trade-in.
Customers seeking to upgrade must enter into a new lease and return their previous device. Approval for the new lease is not guaranteed, and the monthly payment for the replacement product could be higher.
A customer may also close the lease and return the device, although terminating the agreement before the end of its initial term may incur substantial fees.
A customer who does not upgrade, return the product, or pay the required purchase fee at the end of the initial term may have the lease converted to a month-to-month arrangement for up to six months.
Monthly payments may increase during that extension. If the customer takes no action by the end of the extension period, Klarna may charge the purchase fee specified in the lease.
Customers do not own the device unless they pay that purchase fee.
Insurance is not included, and customers may face additional charges if a leased product is lost, stolen, damaged or returned in a condition that does not satisfy the agreement. AppleCare coverage can be purchased separately.
Customers leasing an iPhone must select an eligible postpaid plan from AT&T, T-Mobile or Verizon. Prepaid plans are not eligible, although the leased iPhone remains unlocked and can be moved between supported carriers subject to their terms.
Apple Upgrade is limited to eligible U.S. residents who are at least 18 years old or have reached the legal age in their state.
Applicants must have a valid Social Security number or individual taxpayer identification number, an accepted payment card, an Apple Account in good standing and a Klarna account.
Several products are excluded from the program, including the iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad with the A16 chip and Studio Display.
For Apple, the program provides another way to make premium hardware appear more affordable without reducing the retail price.
The leasing structure may also encourage customers to replace devices more frequently by simplifying the process of returning an existing product and beginning a new agreement.
For Klarna, the partnership extends its payment and financing infrastructure into higher-priced consumer electronics sold directly through one of the world’s largest technology companies.
Customers will need to compare the total lease payments, purchase fee and potential termination or damage charges with the cost of purchasing the device outright or using another financing option.
