Apple introduced Apple Upgrade in the United States on July 28, 2026, bringing eligible iPhones and Apple Watches, along with Macs and iPads, into a leasing program provided by Klarna Inc. Customers can enroll through Apple’s online store or the Apple Store app, and at physical retail locations. The launch ends new enrollment in Apple’s U.S. iPhone Upgrade Program and iPhone Payments option, while existing Citizens One agreements continue under their original terms.
Apple describes the arrangement as a consumer lease, not a purchase or loan. For iPhones, customers can choose a 12- or 24-month term. Apple’s disclosed typical monthly payments range from $82.99 to $132.81 for a 12-month lease and from $57.99 to $92.81 for a 24-month lease, excluding taxes and trade-in credit. The featured iPhone Duo starts at $57.99 per month for 24 months. Actual payments depend on the selected device and lease term.
Apple says no security deposit is required, and the first payment is due about 30 days after the device ships or is picked up in a store. To lease an iPhone, customers must choose an eligible carrier. Approval also depends on eligibility and creditworthiness. Apple’s terms warn that ending a lease before its scheduled term may trigger a large charge, so this is not an unrestricted month-to-month subscription.
At the end of an eligible lease, customers can return the device or make a one-time payment to purchase it. They can also renew with a newer generation, subject to the applicable terms. Ownership does not automatically transfer after the final scheduled payment. Independent coverage describes select iPhones and Apple Watches as available on 24-month leases, with 36-month terms for MacBooks and iPads; Apple’s published U.S. disclosure specifies 12- and 24-month iPhone options. The monthly amount is only part of the cost. Taxes and trade-in treatment matter, as do the lease duration and any purchase payment.
The change shifts Apple away from the previous U.S. iPhone Upgrade Program, which used Citizens One financing and could leave the customer owning the phone after completing the agreement. Existing participants are not automatically moved into Apple Upgrade; their current contracts remain in force through their agreed completion. Under the new lease, returning or replacing the device becomes a basic end-of-term choice.
The program arrives amid pressure on hardware costs and supply. On a July 30, 2026 earnings call, Apple management characterized memory pricing as a “100-year flood” and said costs were expected to rise further in the September quarter. The same call was described as reflecting shortages after demand for Macs and iPhones exceeded the company’s forecasts. Leasing can lower the visible monthly payment, but it does not reduce the device’s underlying price.
For Apple, the model expands payment flexibility while creating a recurring decision at the end of each lease: customers can return the device or buy it under the applicable terms. Renewal is another option. It also differs from conventional installment financing, where completing payments generally leads to ownership. Apple Upgrade is currently a U.S. program. Carrier eligibility and credit approval shape who can enroll, while the selected device and lease term determine what they pay.
