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Apple Upgrade is now available in the United States, giving customers a new way to get Apple devices through monthly lease payments. Apple announced the program Tuesday, July 28, with Klarna providing the leases.
The program covers iPhone, Apple Watch, Mac and iPad. It gives shoppers another option beyond buying a device upfront or using traditional financing.
How Apple Upgrade Works
Apple Upgrade lets customers lease eligible Apple products for set monthly terms. iPhone and Apple Watch leases are available for 12 or 24 months. Mac and iPad leases are available for 24 or 36 months.
At the end of the lease, customers can return the device and upgrade to something new. They can also leave the program and return the device. Apple says customers may also buy the device outright through Klarna.
The program is available through the Apple Store online, the Apple Store app and Apple Store locations in the United States. Apple says customers can apply during checkout after choosing Apple Upgrade as the payment option.
Apple Upgrade Monthly Prices
Apple says lease prices start at $17.99 per month for iPhone. Apple Watch starts at $11.99 per month. Mac starts at $24.99 per month, while iPad starts at $11.99 per month.
Actual monthly prices will depend on the product, model, storage and lease term. Premium models will cost more each month.
Customers can lower monthly payments by trading in an eligible device through Apple Trade In. Apple Card users can also earn 3 percent Daily Cash when making lease payments with Apple Card, according to Apple.
What Customers Need To Know
Apple Upgrade leases are provided by Klarna. First-time applicants must provide personal information, including legal name, date of birth, phone number, email, billing address and Social Security number.
Apple says applicants need an eligible U.S. credit or debit card. Prepaid cards are not accepted. Customers must also live in the United States, excluding U.S. territories, and meet legal age requirements.
For iPhone leases, customers must connect the device to AT&T, T-Mobile or Verizon when enrolling. Apple says iPad, Mac and Apple Watch leases do not require a carrier connection.
AppleCare is not automatically included in the base lease. Customers should review coverage options before enrolling, especially because damage fees may apply if a returned device is not in good condition.
What Happens When The Lease Ends
When customers become eligible to upgrade, they can close the current lease, choose a new device and start another lease. Apple says customers must return the old device within 14 days after receiving the new one.
Customers can upgrade early, but Apple says Klarna may charge an early termination fee. That fee can equal the unpaid monthly lease payments, including taxes and fees.
At the end of the lease, customers have up to six months to decide whether to upgrade, return the device or buy it. During that period, monthly payments continue. If no action is taken, Klarna can charge a purchase option fee under the lease agreement.
Apple Upgrade also marks a shift from Apple’s earlier iPhone Upgrade Program. Apple’s website now says that program is coming to an end, though current members can continue making remaining monthly payments.
For customers who like having newer devices, Apple Upgrade may offer a more flexible path. However, shoppers should compare the total lease cost, damage rules and buyout price before signing up.