Apple Upgrade: 20 Things You Should Know Before Leasing an iPhone, iPad, or Mac

Apple has officially introduced Apple Upgrade, a new device leasing program in partnership with Klarna, replacing the long-running iPhone Upgrade Program. The service allows eligible U.S. customers to lease iPhones, iPads, Macs, and Apple Watches with lower monthly payments, but there are several important conditions users should understand before signing up.

Key Things to Know

• Available only in the U.S. at launch.
• Unlocked iPhones are provided, though customers must initially choose AT&T, Verizon, or T-Mobile during checkout.
• A postpaid carrier plan is required; prepaid plans are not supported.
• Customers do not own the device unless they complete the final buyout payment at the end of the lease.
• Missing a payment will not disable your iPhone or Apple services.
• Missed payments are added to the next month’s bill, with no late fees.
• After three consecutive missed payments, Klarna can terminate the lease and demand the remaining balance.
• AppleCare+ is no longer included and must be purchased separately.
• Users may be charged for physical damage when returning a leased device if it is not covered by AppleCare+.
• The previous iPhone Upgrade Program has been discontinued, though existing members can remain enrolled until their next upgrade.
• Customers can still purchase iPhones using Apple Card Monthly Installments and own the device outright.
• Several products, including the iPhone 16, Apple Watch SE, MacBook Neo, and Studio Display, are not eligible for Apple Upgrade.
• Education discounts and refurbished devices are not supported under the leasing program.
• Leases can be paid off early without penalties.
• Apple performs only a soft credit check, meaning applying does not affect your credit score.
• Trade-ins are supported, with the value spread across monthly lease payments.
• Klarna has payment restrictions and does not accept certain major credit cards.

Community Reaction

The launch has generated mixed reactions among Apple users. While many welcomed the lower monthly pricing and broader device eligibility, others expressed concerns over Apple’s partnership with Klarna, the removal of AppleCare+ from the base lease, and the fact that customers do not automatically own their devices at the end of the lease term.

Apple says the new leasing model offers more flexible upgrade options, while customers who prefer ownership can still purchase devices outright or finance them through Apple Card Monthly Installments.