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

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Apple retired the iPhone Upgrade Program in favor of a new Apple Upgrade leasing option made available in partnership with Klarna. Apple Upgrade gives customers an option to get iPhones, iPads, Macs, and Apple Watches at cheaper prices than before, but there are some things worth knowing about it.

apple-upgrade-program-1.jpg

We've gathered up some smaller tidbits that you should be aware of before deciding to opt in.
  • U.S. Only - Apple Upgrade is only available in the United States, and there's no word on whether it will expand to other countries.
  • Unlocked iPhones - iPhones leased with Apple Upgrade are unlocked, but you are required to choose a carrier at checkout. Carrier options include AT&T, Verizon, and T-Mobile. Since the iPhone is unlocked, you can switch carriers after purchase or add a second eSIM.
  • Postpaid Plans Only - You have to have a postpaid plan through a supported carrier to use Apple Upgrade. Prepaid plans aren't an option when leasing.
  • Ownership - You don't own the iPhone you're leasing at the end of the lease term unless you pay off the final amount. Your final payment is the device's cost when it was leased minus what was paid during the lease. If you don't want to purchase the iPhone, or if you want to upgrade, you need to return the leased iPhone.
  • No Lockout - Code in the iOS 27 beta suggested Apple could restrict apps and services if there are missed payments on a leased device, but it's not for Apple Upgrade. Missing a payment won't change how your iPhone works.
  • Missed Payments - If you miss a payment, it's rolled into your next month's payment. There are no late fees.
  • Three Strikes - If you miss three payments in a row, Klarna automatically terminates your lease and the full balance of the iPhone is due immediately. Klarna will subtract the value of the iPhone from the amount owed when you return it, cutting down on the payoff amount. If you don't return the iPhone or don't pay the balance, Klarna will send the account to collections.
  • No Fees - There are no fees for missing a payment, but you are subject to the lease termination rules. Missing a payment can also impact your credit score.
  • AppleCare+ - Unlike the iPhone Upgrade Program, AppleCare+ is not included with the Apple Upgrade leasing fee, and it needs to be purchased separately. AppleCare+ for the iPhone is $9.99 to $13.99 per month, or you can get AppleCare One for $19.99 per month. AppleCare One covers three devices.
  • Damage - Klarna will charge for any damage, and Klarna does the damage assessing, not Apple. You'll need to pay for any damage when returning a device. If you have AppleCare+, you'll only pay the AppleCare+ service fee.
  • iPhone Upgrade Program - The iPhone Upgrade Program is discontinued. Current members don't have to swap to Apple Upgrade or another purchase option right now, but will need to do so at their next upgrade.
  • Apple Card Monthly Installments - Apple Card holders can still choose to finance an iPhone with zero interest using the Apple Card Monthly Installments option. An iPhone purchased with Apple Card is owned outright.
  • Ineligible Products - Some Apple devices can't be purchased with Apple Upgrade, including the iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, A16 iPad, and Studio Display.
  • No EDU - You can't use Apple Upgrade for discounted education prices.
  • No Refurbished Devices - You can't buy a refurbished Apple device with Apple Upgrade.
  • Ending a Lease Early - You can end a lease early, but you need to pay off the remaining amount on the lease and then return the device.
  • Buying Out a Lease - You can pay off a lease early with no penalty.
  • Soft Credit Check - There's no hard credit check when initiating a lease, so getting approval for a lease won't affect your credit.
  • Trade-Ins - When you initiate a lease, you can trade in an old iPhone. Trade-in value is split across your monthly payments instead of applied up front. You can't do a trade-in when sending a device back to upgrade to a new one.
  • Payment Restrictions - Klarna doesn't accept credit cards, so purchases need to be made with a debit card, ACH payment, or direct debit. Online banking apps like Cash App also don't work.
More Details

We have more information on Apple Upgrade in our full article, along with details on pricing.

Article Link: Apple Upgrade: 20 Things to Know Before Leasing an iPhone, iPad, or Mac
 
Article Link
https://www.macrumors.com/2026/07/28/apple-upgrade-program-tidbits/
Why do this instead of the Apple Card installments? What is the difference? I use the Apple Card installments all the time that way I can invest my 10k+ I would spend on a maxed out Mac Studio.
 
ELman said:
Buying your device with no monthly payments reduces a lot of stress.
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People don’t think like that anymore. They think “low monthly payments” will be less stressful.

Klarna is banking on missing payments, sending to collections, life happens and in the middle of a dozen subscriptions and leases, Klarna knows things get lost in the cracks.
 
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The Apple webpage says:

"You can use all debit cards and most major credit cards for your Klarna payments. However, some card networks, like AMEX and UnionPay — and some card issuers, like Chase and Capital One — are not accepted at Klarna."
 
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Bones402 said:
If full price to own the 17pro, you will still over several hundred dollars after 24 months.
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Buyout price at lease start. You are correct that several hundred would be required to buy it after the lease end. The total cost in that case, however, would not be different from just buying it outright.
 
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Ethosik said:
I’m just asking. If there is no other difference then maybe I can drop my Apple Card.
Click to expand...
the actual monthly payments are lower, but, at the end of the lease, you haven't pid off the device in full so still owe money if you want to keep it. with Apple Card, when you're done with your monthly payments, you own the device
 
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