Apple introduces Apple Upgrade, a device leasing program in the US with Klarna. The offer covers iPhone, iPad, Mac, and Apple Watch. Flexible terms and trade-in options are included. Previous iPhone payment plans are discontinued.
Apple has unveiled a new leasing initiative for its devices in the United States, partnering with Klarna to launch the Apple Upgrade program. This move marks a significant shift in how Americans can access iPhone, iPad, Mac, and Apple Watch models, as the company phases out its previous iPhone Upgrade Program and iPhone Payments options. The new scheme allows customers to lease eligible devices with a choice of flexible terms and the possibility to reduce monthly costs through trade-ins.
Under Apple Upgrade, users can select 12- or 24-month leases for iPhone and Apple Watch, while Mac and iPad are available on 24- or 36-month terms. Monthly payments start at $17.99 for iPhone, $11.99 for Apple Watch, $24.99 for Mac, and $11.99 for iPad. Customers enrolling in the program can trade in their current Apple device, which directly lowers the monthly payment during the lease period. At the end of the term, participants have the option to upgrade to the latest model, purchase the device outright, or return it to Apple.
The partnership with Klarna, a company widely recognized for its buy now, pay later (BNPL) services, signals a departure from traditional installment loans. Unlike Klarna’s standard BNPL offerings, Apple Upgrade is structured as a lease, not a loan. This distinction is important as more Americans turn to alternative financing for technology purchases. According to a Gallup survey, over half of US consumers have used installment plans for online shopping, reflecting a broader trend toward flexible payment solutions.
Apple’s decision to discontinue its previous iPhone payment programs coincides with the rollout of Apple Upgrade, which is now available both online and in Apple Store locations across the US. The company emphasizes that the new program is designed to offer greater flexibility and more options for customers seeking to access the latest technology without committing to traditional ownership or long-term loans.
Recent years have seen a surge in partnerships between technology firms and financial service providers, aiming to make high-value devices more accessible. For example, a similar trend was observed when Indra and Bold joined forces to strengthen Catalonia’s tech sector, as highlighted in this report on regional industry collaboration. Such alliances reflect a growing focus on consumer flexibility and industry adaptation to changing purchasing habits.
Apple Upgrade’s launch comes at a time when device leasing is gaining traction in the US market, offering consumers alternatives to outright purchases or standard financing. The program’s structure allows users to keep pace with rapid technology cycles, while Klarna’s involvement brings established expertise in flexible payment models. As the landscape for consumer electronics financing evolves, Apple’s new approach may set a precedent for other manufacturers and retailers seeking to adapt to shifting consumer expectations.
For context, device leasing has become increasingly common in the US, particularly for smartphones and laptops, as consumers look for ways to manage costs and stay current with new releases. The Apple Upgrade program’s integration of trade-in options and multiple term lengths is designed to address these needs, potentially influencing how other tech companies structure their own offerings in the future.
