Apple has launched Apple Upgrade, a hardware leasing program backed by financial technology company Klarna, the company announced this week.
The program offers monthly lease payments starting at $17.99 for iPhone, $11.99 for Apple Watch, $24.99 for Mac and $11.99 for iPad — though those figures represent starting prices and actual costs will vary depending on the device and lease term selected.
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It’s available through the Apple Store online, in the Apple Store app and at U.S. Apple Store locations.
“We’re thrilled that Apple Upgrade offers our customers, both online and in-store, a more flexible way to pay for the products they love, said Karen Rasmussen, Apple’s vice president of the Apple Store online.
How Apple Upgrade works
Apple Upgrade offers 12- and 24-month leasing options for iPhone and Apple Watch, and 24- and 36-month leasing options for Mac and iPad. Customers who trade in a current device through Apple Trade In at enrollment may reduce their monthly payments.
Customers apply online or in-store and receive an approval decision from Klarna. The application uses a soft credit inquiry, which the companies say will not impact an applicant’s credit score. Once approved, in-store customers can leave with their device the same day. Online customers can choose delivery or in-store pickup.
Lease details — including billing schedules and remaining payments — are managed through the Klarna app. At the end of a lease term, customers can upgrade to the latest device, purchase the current device outright or return it and exit the program. An AppleCare subscription can be added to the plan.
What happens at the end of a lease
It is worth noting that leasing, by nature, means customers do not own their device during the lease period. Those who opt to return the device at the end of the term will have made payments without retaining ownership — a key distinction from financing or purchasing outright. Customers considering Apple Upgrade may want to compare total lease costs against other payment options before enrolling.
iPhone Upgrade Program to end
The launch of Apple Upgrade also marks the end of two existing Apple programs in the U.S. — the iPhone Upgrade Program and iPhone Payments. Customers currently enrolled in the iPhone Upgrade Program will, when eligible, be able to lease a new device through Apple Upgrade, finance through Apple Card Monthly Installments, purchase a device outright or choose carrier financing.