Apple Retires iPhone Upgrade Program for Klarna-Backed Leases

[DEMinSoCAL]

Here is the thing, you aren't "purchasing" anything with this plan. You are leasing the devices....aka "renting". You don't own the devices.

Unlike renting, your payments are going towards the purchase if you choose to do so. It's leasing, except every penny of your payments goes to the purchase with no extra fees or interest.

 

[iwataasks]

Either you're rich or just don't understand you don't have to be "struggling financially" to not be comfortable spending over $3000 upfront for a computer. Sometimes I think many people here don't realize how most people live.

If you skip payment and have devices on loan you will loss everything. You won't be making phone calls, do computer work, etc.

Leases is death trap for working people.

 

[AppleTO]

I mistakenly did a phone lease like this with a Canadian carrier a few years ago. If the phone even had a single scratch they would not accept it back, and you would be charged the rest of it. They expect phones out on two year plans to come back in the exact same (mint) condition. It’s basically a scam.

 

[ant the ninja]

Ok so I found a link in the middle of this page that lets you log into your Upgrade Program account and it tells you the process. TLDR; pay the final 12 month payment, then switch over to the new lease program during purchase of the next iPhone.

EDIT: Here is the iPhone Upgrade Program link that tells you what to do to switch to the new Klarma program

iPhone Upgrade Program

Get a new iPhone every year, and the protection of AppleCare+ with the iPhone Upgrade Program. Buy now or visit an Apple Store today.

www.apple.com

Seems like it will work essentially the same for us existing iUP members. We still have the option of returning in September then moving to the new program.

 

[DEMinSoCAL]

The perspective that this is "interest free" assumes that the interest isn't rolled into the cost of the device up front. I assume that interest is part of the device cost and is shared by everyone who buys a device by any means, through this program or some other way.

Absolutely made up in your head and absolutely ridiculous.

 

[ab2c4]

Makes sense to most people except the entitled rich who think most people shouldn't have nice things.

Its not "entitled rich", its called being "financially educated" and "financially responsible".

 

[CalmEnvy]

Apple doing the impossible - allowing you to rent the iPhone because it is so damn expensive now...don't fall for it guys!! save your $$$ and then buy it outright...these leases aren't worth it!!

Agreed, I'm in Canada and we don't have this lease option. If you want you can buy directly form Apple and pay monthly over 24 months at 0% interest. All you need to do is pay taxes upfront and then the monthly fee for 24 months with the ability to pay it off early. At least you can choose any carrier you want with this instead of being locked into a few.

 

[chuckles235]

Klarna makes me think payday lender. And this is likely just another way to justify further price increases. Just like Trump and his 50 year mortgages. The principal and interest don’t matter so long as the monthly payment is low. Sad.

 

[PixelPanics]

We have Klarna in the UK why didn't we get this

 

[ProbablyDylan]

Klarna is the most trashy thing Apple could've done. Leasing phones now. Watch how high the prices will go. Soon $999 will be the starting base iPhone price. Pro will start at $1299 and Ultra at $1999.

It's like cars or education. Doesn't matter how expensive it is because it's actually only $39.99 a month!

 

[spartan1967]

I am wondering if people using carriers other than the big 3 are more likely to default on payments. I know there is always collections, but a lot of the time these situations are settled with a much lower payment amount than what is owed.

 

[darthbane2k]

The perspective that this is "interest free" assumes that the interest isn't rolled into the cost of the device up front. I assume that interest is part of the device cost and is shared by everyone who buys a device by any means, through this program or some other way.

Hmm..
Didn’t the cost of ALL services increase recently?..

 

[DEMinSoCAL]

I guess I’m old school, because I learned to save up for the things I want, starting with an Atari 2600 I bought with paper route money when I was 12. I saved up for 2 years for my latest laptop.

Yeah, things have changed in 50 years and paper routes barely exist. Meanwhile, here we are in 2026.

 

[C7 POWER]

If I am reading the details on the article correctly, We must pay the remaining balance off in full if we want to upgrade? So currently on the 1UP after 12 months we get a new device and send the old one back, no fees or no requirement to pay in full.

With this new plan, we cant upgrade annually like we did on the 1UP?

 

[colef1502]

It could have just as easily been a Klarna stipulation for this arrangement.

It’s about money

 

[DEMinSoCAL]

If you skip payment and have devices on loan you will loss everything. You won't be making phone calls, do computer work, etc.

Leases is death trap for working people.

Did you even read the terms? Apparently not because the missed payments scenario is explained and is very generous. I'll help you out -- you can miss up to 3 payments.

 

[darthbane2k]

If I am reading the details on the article correctly, We must pay the remaining balance off in full if we want to upgrade? So currently on the 1UP after 12 months we get a new device and send the old one back, no fees or no requirement to pay in full.

With this new plan, we cant upgrade annually like we did on the 1UP?

My understanding is that you can upgrade. It isn’t clear when an upgrade is offered but one can only assume it’s after a year.
In terms of paying remaining balance, that’s to come off the lease agreement and buy the phone outright. If you look at the cost of monthly payments multiplied by 24, it’s less than the cost of buying the phone outright. That’s where the final payment comes in.

 

[macintologist]

Yes, for people who intend to keep their iPhones, this is a way to spread out the cost over 2 years, interest-free.

But that option has always been available: you can buy an iPhone on a 24-month payment plan that's interest-free.

What's new about this Apple Upgrade program is the lease part. Leasing cars costs you more in the long run, but is tempting because it gets you into a new car every 2-3 years for a monthly payment that's lower than the payment you'd pay if you purchased the car with a loan. The Apple Upgrade program appears to be much simpler and more transparent than a car lease.

I guess I'm glad this option exists for those who might benefit from it, but it's not for me. With prices going up, I'll be replacing my iPhone every 3-4 years instead of every 1-2 years as I've been doing until now. So the 24-month interest-free purchase plan is the best option for me.

I’m still using an iPhone 12. I think most people just spend too much and upgrade too frequently.

 

[goonie4life9]

Sad to see Apple continues their deceptive marketing of “Get a new iPhone with any carrier.” Apple requires using one of the Big Three carriers when you make the purchase using Apple Upgrade program.

 

[macintologist]

Anything in business is done to encourage you to spend. When a product is put on sale, it's done to encourage you to buy it when, at full price, you might not otherwise do so.

It’s 100% discount if you don’t buy it

 

[Nekronos]

You are both right and wrong.
Yes the math is correct. Yes you financially gain by leasing.
But there is also psychology. With an attractive monthly price instead of a difficult up front payment, your brain is more likely to spend money on this product, versus simply keeping your old phone for longer.

That is the goal of these programs. To encourage you to spend. Personal finance is more psychology than math.

This is replacing an existing upgrade program which already had digestible payments.

Leasing was not designed as a way to get you to spend more - that's not to say it doesn't have that effect in the end for some people, particularly in the consumer oriented society we live in but leasing is and was designed to make things more affordable.

If anything is designed to get you to spend more, it's marketing.

 

[EuropaAeterna]

You have never really owned anything, it has always been theoretically possible for your property to be seized.


And of course, you absolutely never owned the software on any of your devices.

What a stupid “well, akshually” comment.

 

[PBG4 Dude]

Yeah, things have changed in 50 years and paper routes barely exist. Meanwhile, here we are in 2026.

If saving up for things one wants is out of style, then I am proudly wearing bell bottom pants and wide lapel flower shirts.

 

[svish]

Good to know about this program. I prefer to pay full amount outright when purchasing a device. But good to have various purchase options for customers. Don't think this program will be available outside US anytime in the near future.

 

[zilchfox]

“If you’re leasing an iPhone, you’ll need to connect to AT&T, T-Mobile, or Verizon when you enroll. You can lease an iPad, Mac, or Apple Watch without a carrier connection.”

Fail.
Some of us don’t want your big three slobber fests Apple.

You can switch it away or cancel the carrier immediately after, as the iPhone isn’t locked and the lease isn’t binding to a specific carrier, just initial activation required with one of those three. You can do whatever you want afterwards with it.