Apple is making its most desirable devices appear more affordable through a new Klarna-backed leasing programme. The monthly payments may be lower, but customers must weigh flexibility against ownership, additional protection costs and the resale value they leave behind.
Apple has spent decades convincing consumers that its newest device is the one they should own. Its latest retail initiative asks a slightly different question: do customers need to own the device at all?
The technology company has launched Apple Upgrade, a new leasing programme allowing eligible customers to access selected iPhones, iPads, Macs and Apple Watches through comparatively low monthly payments.
Introduced in the United States on 28 July 2026, the service is provided by Klarna and offers terms ranging from 12 to 36 months. At the end of the agreement, customers can return the device, replace it with another eligible Apple product or make a final payment to purchase it outright.
On the surface, it is a compelling proposition. An iPhone can be leased from $17.99 per month, an Apple Watch from $11.99, an iPad from $11.99 and a Mac from $24.99. The smaller monthly figures make premium devices appear more accessible at a time when the cost of high-end consumer technology continues to rise.
Yet the lower payment does not necessarily mean the customer is receiving the best long-term value.
A broader alternative to traditional financing
Apple Upgrade replaces the company’s former iPhone Upgrade Program and iPhone Payments service in the United States. Unlike its predecessor, the new arrangement extends beyond the iPhone to include selected tablets, computers and watches.
Customers can choose 12 or 24-month leases for an iPhone or Apple Watch, while Mac and iPad agreements are offered across 24 or 36 months. The application process includes a soft credit check, which Apple says will not affect the applicant’s credit score.
The company’s current examples include an iPhone 17 Pro starting at $31.99 per month over 24 months, an iPhone Air from $28.99, an iPhone 17 from $22.99 and an iPhone 17e from $17.99. A MacBook Pro starts at $38.99 per month across 36 months, while the iPad Pro begins at $24.99 over the same period.
For buyers accustomed to seeing flagship phones priced above $1,000, those figures make the latest hardware feel considerably more attainable.
However, this is not a conventional instalment purchase. Apple describes the arrangement as a consumer lease, and the device remains part of the leasing agreement until it is returned or purchased through the final payment option.
A lower monthly payment changes how expensive a device feels, but it does not change who owns it.
The ownership question
The central consideration is simple: customers do not automatically own the product when the original lease term ends.
Once all scheduled payments have been made, the customer can return the device and leave the programme, return it and begin another lease, or pay the remaining purchase-option amount through Klarna to take ownership.
For example, The Verge calculated that leasing an iPhone Air for two years would cost $695.76. A further $303.24 would then be required to purchase the handset at the end of the agreement, bringing the combined amount to its $999 retail price.
This means the customer is not necessarily being overcharged for eventually owning the product. The trade-off becomes more apparent when the device is returned or exchanged.
Someone who buys an iPhone outright can later sell it privately or trade it in, recovering part of the original cost. A customer who simply returns a leased device receives no resale value because the product was never theirs to sell.
That distinction matters particularly with iPhones, which have traditionally retained a meaningful proportion of their value compared with many rival smartphones.
Protection is no longer included
AppleCare was previously included within the US iPhone Upgrade Program. Under Apple Upgrade, device protection is optional and billed separately.
Customers remain responsible for returning the leased product in good working condition. Damage outside the permitted standards may result in an additional charge, making AppleCare an important consideration when assessing the true monthly cost.
Apple allows customers up to 60 days after enrolling to add AppleCare coverage. The company also promotes AppleCare One, which can protect several eligible devices under a single monthly subscription.
For consumers leasing a MacBook, iPad or premium iPhone for several years, paying for protection may feel less optional than the marketing suggests. A damaged display, liquid exposure or stolen device could otherwise leave the customer paying for hardware they can no longer use or return in the required condition.
When a leased device is lost or stolen without relevant AppleCare protection, Apple says the customer must either pay the early termination amount or settle the purchase-option fee. Monthly charges continue until one of those actions is completed.
The advertised lease price should therefore be treated as the starting cost rather than the complete cost of comfortably participating in the programme.
Leaving early could be expensive
Apple Upgrade is designed for customers willing to remain within the selected term.
After the initial 14-day return period, ending the lease early requires payment of an early termination fee. Apple states that this fee is equal to the unpaid monthly lease payments that would have been due through the remainder of the original agreement, including applicable charges.
Upgrading before completing the full term can also result in a fee.
A customer choosing a 24-month iPhone lease, for example, becomes eligible for a fee-free upgrade only after making all 24 scheduled payments. Starting another lease sooner requires the existing agreement to be closed and the outstanding termination amount paid.
That structure makes the programme less flexible than the word “upgrade” might initially imply. It offers a clear route into the newest Apple hardware, but customers are still committing themselves to a fixed contractual period.
The six-month decision window
Another detail appears at the end of the lease.
Customers have six months to decide whether they will return the device, upgrade or purchase it. However, the monthly payments continue during this period until the customer takes action.
Where a trade-in credit reduced the original lease payments, the monthly charge may also increase during the extension because that credit applies only to the initial term. Should the customer take no action by the end of the six months, Klarna can charge the purchase-option amount and transfer ownership of the device.
The extension provides time to make a decision, but it is not a free grace period. Customers who forget to respond could continue paying beyond the expected end date before being charged the remaining purchase amount.
Trade-ins lower the price only once
Apple allows customers to trade in an eligible device when first enrolling, with the value distributed across the monthly payments of the initial lease.
That can substantially reduce the visible cost, but the credit applies only to the first agreement. Customers cannot trade in the leased device to lower the cost when upgrading because they do not own it. They simply return it and begin another lease at the price then being offered.
This could create a cycle in which users make continuous monthly payments without building value in the products they use.
For customers who always want the latest iPhone and have little interest in resale, that simplicity may be attractive. For those who keep devices for several years, repair them or sell them independently, purchasing is likely to preserve greater flexibility.
Apple Upgrade removes much of the inconvenience of selling an old device, but it also removes the financial return.
What the programme means for UK customers
Apple Upgrade is currently a United States service and should not be confused with the finance options advertised through Apple’s UK store.
In Britain, Apple currently promotes a Flexible Finance Account provided by Creation. The advertised upgrade options include a 20-month plan starting from £39.95 per month at 0 per cent interest, with an upgrade available after 11 payments, and a 30-month plan from £26.63 per month, with an upgrade after 23 payments. Eligibility and the precise rates offered remain subject to the finance agreement.
Apple Trade In is also available separately in the UK, allowing customers to apply an eligible device’s assessed value towards a new purchase or receive an Apple Gift Card.
Whether the Klarna-backed leasing model will eventually expand beyond the United States has not been confirmed.
Convenience at a continuing cost
Apple Upgrade reflects a broader transformation within consumer technology.
Streaming services have already changed the way people access entertainment and software subscriptions have replaced many one-time purchases. Hardware leasing brings the same recurring-payment logic to the devices through which those services are consumed.
For Apple, the programme could encourage customers to remain within its ecosystem while upgrading more regularly. For consumers, it reduces the immediate financial barrier to accessing premium hardware and removes the need to sell an old device privately.
The arrangement is not automatically poor value. A disciplined customer who understands the terms, protects the device and values consistently low payments may find it convenient.
The danger lies in focusing entirely on the monthly figure.
Returning a product means surrendering its remaining value. Keeping it requires another payment. Leaving early can mean settling the rest of the original term, while optional protection adds another recurring charge.
Apple Upgrade makes the latest technology easier to acquire. Whether it makes that technology more affordable depends on what the customer does when the lease reaches its end.