Apple Upgrade leasing program now live for iPhones, iPads, Macs in US

Apple's leasing play

Apple has officially launched its 'Upgrade' device leasing program in the United States. The service, available from Tuesday, lets customers lease iPhones, Apple Watches, iPads, and Macs for a fixed monthly fee. Reports of the program first emerged last week, and Apple has now confirmed its partnership with Swedish fintech firm Klarna to handle payments.

The cheapest option starts at $17.99 per month for an iPhone. Pricing varies by device model and storage capacity. The program is designed to replace outright purchases or traditional EMI plans, offering a subscription-like path to owning Apple hardware.

What the program includes

Customers can walk into an Apple Store or order online, choose a device, and opt for the leasing plan at checkout. Klarna will underwrite the financing, and users will pay a monthly fee for 12 or 24 months. At the end of the term, they can return the device, upgrade to a newer model, or buy it outright.

Apple has not disclosed whether the program includes AppleCare+ or insurance. The leasing option is available for current-generation devices and some older models. It is limited to the US for now, with no official word on an India launch.

Fine print from leaked code

Developer reports from the iOS 27 beta suggest Apple plans to enforce strict measures on leased devices. Code strings indicate that if a customer misses payments, Apple could remotely restrict certain features or even lock the device. The exact triggers and grace periods are unclear.

This aligns with similar practices seen in carrier financing plans, but marks a more aggressive stance for Apple's direct sales. The company has not commented on the code findings. Privacy advocates may raise concerns about remote control over hardware that users pay for monthly.

Why the shift to leasing

Apple's move comes as smartphone upgrade cycles stretch longer. Many users hold onto iPhones for three or more years. A leasing program ensures a steady revenue stream and locks customers into the Apple ecosystem. It also reduces the upfront cost barrier, potentially boosting sales of higher-margin Pro models.

The partnership with Klarna is strategic. Klarna specialises in buy-now-pay-later services and already works with thousands of retailers. By handling credit checks and collections, Klarna lets Apple avoid the regulatory complexities of being a lender.

What this means for competitors

Google and Samsung offer trade-in and financing plans, but neither has a direct leasing program akin to Apple's. Apple's brand loyalty and resale value give it an edge. Leased devices returned in good condition can be refurbished and sold, creating a secondary revenue stream.

Analysts will watch adoption rates closely. If the program succeeds, it could pressure rivals to launch similar offerings. It may also accelerate the shift toward device-as-a-service models in consumer electronics.

Apple has not set a timeline for international rollout. For Indian customers, the program remains unavailable. However, Apple's growing retail presence in the country and its partnership with local banks for EMI plans suggest a leasing option could eventually arrive, subject to regulatory approvals and credit infrastructure.