Apple Launches 'Apple Upgrade' Hardware Leasing Program in U.S.
The tech giant shifts toward a hardware-as-a-service model, allowing users to lease iPhones, Macs, and iPads.
Apple has officially entered the hardware leasing market with the launch of "Apple Upgrade," a new program allowing customers to lease iPhones, Macs, iPads, and Apple Watches. Launched on July 28, 2026, in partnership with Klarna, the initiative represents a strategic pivot toward a subscription-style model for device ownership, moving away from the company's traditional reliance on one-time hardware sales.
The program is available to customers in the United States via the Apple Store online, the Apple Store app, and physical retail locations. According to company details, the program covers the entire iPhone 17 line as well as select Mac, iPad, and Apple Watch models. However, the leasing option is not universal; certain budget or older hardware, including the iPhone 16, Apple Watch SE, and Mac mini, are excluded from the program.
The Shift to Hardware-as-a-Service
This move coincides with a broader industry trend toward "hardware-as-a-service," where consumers pay for access to technology rather than owning the asset outright. Apple is not alone in restructuring how customers pay for devices. Around the same time, T-Mobile introduced 36-month installment agreements featuring variable APRs ranging from 0% to 24%, with the final rate determined by the customer's creditworthiness.
Market Implications
By transitioning a portion of its user base from a pure sales model to a leasing framework, Apple creates a predictable, recurring revenue stream. More importantly, the model is designed to accelerate the upgrade cycle. By lowering the immediate financial barrier to the latest hardware, Apple can encourage users to swap their devices more frequently, ensuring a higher percentage of the install base remains on the latest OS and hardware iterations.
This shift also reflects a growing consumer preference for "access over ownership." While this appeals to users who want the latest tech without a massive upfront cost, the move has sparked debate. Some users have expressed concerns regarding the loss of true device ownership and the potential for Apple to exert stricter control over how leased devices are used or modified.
What to Watch
As the program rolls out across the U.S., the industry will be watching to see if this model expands to other international markets. It remains to be seen how the partnership with Klarna will scale and whether the exclusion of budget models like the Mac mini is a permanent strategy or a temporary limitation of the initial launch phase.