Apple Upgrade will introduce lease-to-own payments for iPhones and other Apple devices in the United States from July 28. Customers can make monthly payments, upgrade early, return the device or keep it after completing the agreement. The service is reportedly financed by Klarna and remains unconfirmed through a formal Apple announcement. The development was also reviewed by the Baltimore Chronicle , according to a Bloomberg report by Mark Gurman.
How the Apple Upgrade leasing program will work
The new program resembles vehicle leasing rather than a standard instalment loan. Applicants will undergo a soft credit check, which normally does not affect their credit score.
Customers will reportedly receive several options during or after the agreement:
- pay off the remaining balance early;
- exchange the device for a newer model;
- keep the product after completing all payments;
- return the device when the lease expires.
Some transactions may include additional fees. Exact monthly prices, interest rates and early-upgrade charges have not yet been disclosed publicly. Apple and Klarna have not formally commented on the reported launch.
Apple already supports selected deferred-payment services at checkout. However, Apple Upgrade would create a separate leasing system covering several product categories.
Which Apple devices will qualify
The expected contract length depends on the type of product. Smartphones and watches will have shorter agreements than computers and tablets.
| Device category | Expected lease term |
|---|---|
| iPhone | 24 months |
| Apple Watch | 24 months |
| iPad | 36 months |
| Mac | 36 months |
The program will reportedly exclude the iPhone 16, Apple Watch SE, basic iPad and MacBook Neo. Business and education purchases will also remain outside the scheme.
Unlike the existing iPhone Upgrade Program, AppleCare will not be included automatically. Buyers may therefore need to purchase protection separately and add that cost to their monthly budget. Apple’s current program includes an eligible AppleCare+ plan.
Will Apple Upgrade become available globally?
The initial launch is expected only in the United States. Neither Apple nor Klarna has announced a timetable for Europe, Britain or other markets.
A wider rollout remains possible because Klarna operates across multiple countries and already supports flexible payments through Apple Pay. Still, expansion would require separate credit terms and regulatory approval in each market.
The reported launch also comes as higher memory and storage costs pressure device prices. Apple could use lower monthly payments to keep expensive products accessible without assuming direct consumer credit risk
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