Apple launched Apple Upgrade, a new hardware leasing program provided by Klarna, in the United States on July 28, 2026. The service offers monthly payment plans for eligible iPhone, Apple Watch, Mac and iPad models. Applications are available through the Apple Store website, the Apple Store app and physical Apple retail locations in the US.
Apple Upgrade is not a standard installment purchase. Apple describes the offer as a consumer lease. Customers make monthly payments for a selected term and, at the end of the agreement, can return the device, buy it with a one-time payment or, subject to eligibility, enter a new lease for a newer device.
Lease terms and starting prices
The program offers 12- and 24-month leases for iPhone and Apple Watch, while Mac and iPad plans are available for 24 or 36 months. Not every term is available for every model. Apple lists starting monthly prices of $17.99 for iPhone, $11.99 for Apple Watch, $24.99 for Mac and $11.99 for iPad. The actual payment depends on the device and lease duration selected.
Klarna handles applications and payments
Klarna evaluates applications for the program. Apple says the initial soft credit inquiry does not affect an applicant’s credit score, although approval remains subject to eligibility and creditworthiness. Approved in-store customers can receive their device immediately, while online customers can choose delivery or pickup at an Apple retail store.
Customers can reduce their monthly payment by trading in an eligible device through Apple Trade In when they first enroll. Eligible Apple Card users can also receive 3 percent Daily Cash on lease payments. Billing schedules, remaining payments and other lease information can be monitored through the Klarna app.
Three choices at the end of the lease
When the lease ends, customers can return the device and leave the program, purchase it with a one-time payment or, subject to eligibility, enter a new lease for a newer model. An upgrade requires the previous device to be returned and a new eligibility and credit review.
US availability only at launch
Apple Upgrade is currently limited to eligible US residents. Leased devices can only be shipped to US addresses or collected from Apple retail stores in the country. Neither Apple nor Klarna has announced a timetable for expanding the program to Türkiye or other markets.
The model is designed to lower the initial monthly cost of accessing expensive devices, but it also changes the ownership relationship. Customers pay to use the product without immediately owning it, so the total cost, end-of-term purchase amount and return conditions are important parts of the agreement. Apple’s official terms specifically state that the offer is a consumer lease rather than a purchase or loan.
The launch broadens Apple’s in-house payment options across four major product categories. Its longer-term impact will depend on how many customers prefer leasing and regularly upgrading devices instead of purchasing and keeping them for several years. For now, Apple has presented the program as an additional US retail payment option rather than a global rollout.
