Apple introduced the Apple Upgrade leasing program in the US on July 28, 2026, in partnership with Klarna, allowing consumers to lease iPhones, Macs, iPads, and Apple Watches with monthly payments starting as low as $17.99 for iPhones and $11.99 for Apple Watches [1, 2, 3, 4, 5, 6]. The program replaces Apple's previous iPhone Upgrade Program and iPhone Payments plans in the US [1, 3, 4, 7, 8, 6].
Leasing options include 12 or 24 months for iPhone and Apple Watch models, and 24 or 36 months for Mac and iPad devices. Higher-end products such as the unlocked iPhone 17 Pro lease for about $31.99 per month over 24 months or $45.99 per month over one year [1, 2, 3, 4, 7, 8, 5, 6, 9]. Lower-tier models like the iPhone 16, MacBook Neo, base iPads, and Apple Watch SE are excluded from the plans [1, 4, 7, 8, 5].
At the end of the lease, customers must return their devices, opt to buy them by paying an additional amount, or upgrade to newer models. The program requires no deposit, and Klarna will terminate leases after three months of missed payments but does not charge late fees [3, 4, 7, 8, 5, 6, 10]. Customers can lower monthly payments by trading in existing Apple devices through the Apple Trade In program and manage their lease payments via the Klarna app [3, 6].
Apple launched the program amid rising device prices caused by global memory chip shortages, which Apple CEO Tim Cook described as akin to a "hundred-year flood" affecting costs [1, 3, 4, 5, 6, 9]. Prices on Mac and iPad products increased in June 2026, and analysts expect iPhone prices to rise further later this year, with the iPhone 18 Pro potentially costing $200 more than previous models [1, 4, 5, 9]. The average US consumer's iPhone replacement cycle has lengthened to about 22 months or nearly four years by some estimates [1, 5, 9].
Industry analysts see the program as a shift toward a subscription model for Apple devices. Francisco Jeronimo of IDC said it "may encourage customers to view iPhone and Mac as a subscription service rather than a high upfront cost durable good" [1]. Nabila Popal, IDC Senior Research Director, noted that aggressive leasing offers align with consumer trends toward installment plans and trade-ins [5]. However, some caution exists over the deal quality; University of Michigan law professor Aaron Perzanowski questioned if consumers are getting real value when Apple promotes such offers [10].
The Apple Upgrade leasing program is available both online and in Apple retail stores across the US [1, 3, 4, 5, 9]. Apple competes with major carriers like AT&T, Verizon, and T-Mobile, which provide their own device installment programs [4, 7, 8].
Apple is expected to launch the iPhone 18 and possibly its first foldable iPhone in September 2026, which analysts predict will be the highest-priced models yet [1, 5, 9].
