Apple Replaces iPhone Upgrade Program With Klarna-Backed Leasing Across All Devices
The new Apple Upgrade program expands subscription-style hardware access beyond iPhone to Mac, iPad, and Apple Watch starting at $11.99 monthly.
Apple retired its decade-old iPhone Upgrade Program on July 28, 2026, replacing it with Apple Upgrade, a Klarna-powered leasing program that extends subscription-style financing across the company's entire hardware lineup.
A Broader Leasing Model
The program covers iPhones, iPads, Macs, and Apple Watches under a unified leasing structure, marking Apple's pivot toward treating hardware as a recurring service rather than a one-time purchase. Leasing terms run 12 or 24 months for iPhone and Apple Watch; Mac and iPad customers can choose 24 or 36-month contracts.
Monthly payments start at $17.99 for iPhones, $11.99 for Apple Watch, $15.99 for iPad, and $24.99 for Macs. At lease end, customers can return the device to upgrade, pay the remaining balance to own it, or exit the program.
Carrier Requirements and Exclusions
iPhone leases carry a notable restriction: devices must be paired with a postpaid plan from AT&T, Verizon, or T-Mobile. Prepaid carriers and MVNOs are ineligible.
Not all Apple products qualify. According to MacRumors' review of the program terms, the leasing system excludes iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16), and Studio Display.
Apple Card Incentives Remain
Apple Card users earn 3% Daily Cash back on lease payments made with the card, preserving a key benefit from the original iPhone Upgrade Program. This aligns with Apple's broader push to integrate financial services across hardware purchases.
Transition for Existing Customers
Customers enrolled in the iPhone Upgrade Program or iPhone Payments can complete existing payment schedules without disruption. New device purchases must go through Apple Upgrade, sunsetting the legacy programs for future transactions.
Hardware-as-a-Service Strategy
The Klarna-backed shift signals Apple's commitment to a Hardware-as-a-Service model that lowers upfront costs while potentially accelerating upgrade cycles. By partnering with Klarna rather than managing financing internally, Apple gains scalability across product categories without expanding balance sheet exposure.
The program creates a predictable pipeline of returned devices for Apple's refurbished sales channels, an increasingly important revenue stream as the company seeks growth beyond new device sales.
Industry analysts view the move as a response to lengthening smartphone replacement cycles and growing consumer preference for subscription-based access over ownership. By extending the model beyond iPhone to Mac and iPad, Apple tests whether customers will embrace recurring payments for their entire device ecosystem.