In July 2026, Apple introduced the Apple Upgrade program, a leasing initiative backed by Klarna, allowing customers in the United States to lease iPhones, iPads, Macs, and Apple Watches. This program replaces the long-standing iPhone Upgrade Program, which enabled users to finance their devices over 24 months and own them after completing the payments. The new leasing model offers customers flexibility, allowing them to choose different lease terms and decide at the end of the lease whether to upgrade, buy outright, or return the device. Monthly lease prices start at $17.99 for iPhones, $11.99 for Apple Watches, $24.99 for Macs, and $11.99 for iPads.
One significant change with the Apple Upgrade program is the removal of AppleCare+ from the monthly payment, which was included in the previous iPhone Upgrade Program. Existing users of the iPhone Upgrade Program will continue to receive AppleCare+ coverage while their financing agreement is active. This shift from a financing model that included device protection to a leasing model focused on flexibility raises questions about potential cost savings for customers. While the monthly payments may appear lower, the additional cost of purchasing AppleCare+ separately could negate those savings.
The launch of the Apple Upgrade program coincides with a transitional period for Apple, as the company prepares for a leadership change. Tim Cook, the longtime CEO, is set to become executive chairman, with hardware chief John Ternus taking over as CEO on September 1, 2026. This change in leadership may influence the company's strategic direction and product offerings in the future.
Overall, the Apple Upgrade program aims to provide customers with more options for upgrading their devices while also adapting to changing market demands. As Apple continues to innovate and evolve, the impact of this new leasing program on customer satisfaction and financial implications remains to be seen.
