Apple Launches 'Upgrade' Leasing Program for iPhones, Macs in US

New Leasing Option Goes Live

Apple has officially launched its 'Upgrade' leasing program in the United States, giving customers a new way to get the latest devices without paying the full retail price upfront. The program covers iPhones, Macs, iPads, and Apple Watches.

Instead of buying a device outright or through an installment plan, users can now lease hardware through a partnership with the fintech firm Klarna. Monthly payments start at $17.99 for an iPhone, though the exact cost varies by device and configuration.

How the Program Works

The leasing model is straightforward. Customers choose a device, pay a monthly fee, and can upgrade to a newer model after 12 months. Unlike traditional installment plans where ownership transfers after full payment, this is a pure lease — users never own the device.

Apple has not specified if there are buyout options at the end of the lease term. The program is managed through Klarna's platform, which handles credit checks and monthly billing. Customers in the US can sign up through Apple's online store or retail locations.

Eligible Devices and Pricing

All current-generation iPhones, including the standard and Pro models, are available under the program. MacBook Air, MacBook Pro, iPad Air, and iPad Pro models are also included. Apple Watch Series 9 and Ultra 2 are part of the lineup.

Pricing varies. The $17.99 figure applies to the base iPhone model. Higher-end devices like the MacBook Pro or iPhone Pro Max will cost more per month. Apple has not released a full pricing table, but early reports indicate the lease rates are competitive with carrier financing options.

Why Apple Is Pushing Leases

This move shifts Apple's business model toward recurring revenue. Leasing ensures a steady income stream and locks customers into the Apple ecosystem. It also makes high-priced devices more accessible to users who may not want to spend ₹1 lakh or more upfront.

The partnership with Klarna is key. Klarna already offers buy-now-pay-later services for many retailers. By integrating with Apple's upgrade program, it simplifies the credit and billing process. Apple has not disclosed the terms of its deal with Klarna.

Competition and Market Impact

Carriers like Verizon and AT&T already offer device leasing or installment plans. Apple's direct program cuts out the middleman, giving the company more control over customer relationships. It also competes with third-party leasing services that have emerged in recent years.

Analysts expect the program to boost upgrade rates. Customers who lease are more likely to switch to a new model every year, driving hardware sales. Apple's services revenue — from iCloud, Apple Music, and app subscriptions — also benefits when users stay on current devices.

What Happens Next

The program is currently limited to the United States. Apple has not announced plans for an international rollout, but given the company's global footprint, expansion to India, Europe, and other markets is likely in the coming months. Customer feedback in the US will determine how quickly Apple scales the leasing model.