GoKawiilAamir Siddiqui / Android Authority
TL;DR Apple has officially launched Apple Upgrade in the US: a Klarna-backed hardware leasing program that replaces its legacy iPhone Upgrade Program and standard installment plans.
The Apple Upgrade program offers 12-to-36-month lease terms starting at $11.99/month across iPhones, Macs, iPads, and Apple Watches, though entry-level models like the base iPhone 16, iPad, MacBook Neo, and Apple Watch SE are excluded.
Given global RAM shortages and rising hardware prices, first-party leasing could be the flexible option users need if they want to own the latest flagships without paying high upfront costs.
As soaring component costs push smartphone prices to record highs, Apple is shifting its retail playbook to make high-end hardware feel more manageable again. Following early reports that the Cupertino giant was planning to pivot toward hardware leasing, Apple has officially launched “Apple Upgrade” in the United States. Powered by Klarna, the program completely replaces its legacy iPhone Upgrade Program and standard installment financing, while expanding subscriptions to Macs, iPads, and Apple Watches.
According to Apple’s press release, the Apple Upgrade program offers 12- and 24-month terms for iPhones (starting at $17.99/month) and Apple Watches ($11.99/month), alongside 24- and 36-month options for Macs ($24.99/month) and iPads ($11.99/month). Applicants undergo a soft credit check through Klarna, can apply trade-in credits to lower monthly payments, and earn 3% Daily Cash using Apple Card.
When a lease ends, users can either: Return the old device and exit the program, or Buy it outright with a one-time payment, or Upgrade to a newer model under a new agreement (practically the same as returning the old device and starting a new lease). Note that you do not automatically own the device at the end of the lease, unlike traditional financing options. Unless you exercise any of the options above at the end of the lease, the lease will not be automatically terminated. Instead, it will be converted to a month-to-month lease for up to six months, with the potential for increased monthly payments. After this period, you will be charged the purchase fee.
Curiously, the Apple Upgrade program is not offered on Apple’s entry-level devices, namely the iPhone 16, Apple Watch SE, base iPad, or MacBook Neo in this generation.
Apple won’t directly admit it, but the timing of Apple’s shift to a “hardware as a service” leasing model isn’t accidental. It directly addresses a market where buying outright is becoming increasingly difficult for average consumers. The ongoing global RAM crisis and skyrocketing memory prices have led to widespread price hikes across the entire tech landscape.
With top-tier Android flagships steadily pushing past the $1,000 threshold, Samsung and Google may want to take a page out of Apple’s playbook. Traditional 24-to-36-month carrier installment plans lock buyers into long-term commitment cycles that can struggle to keep up with annual hardware refreshes (or carrier shenanigans). First-party leasing options could offer Android enthusiasts a less painful way to stay on the cutting edge without getting hit by compounding sticker shock every single generation.
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