What changed for buyers
Apple has introduced a new leasing option for customers wanting to access the latest Macs without paying the full upfront cost. Starting at $11.99 per month, the Apple Upgrade program provides monthly access to Macs, offering a way to acquire devices in the current climate of rising prices, particularly due to the ongoing memory and storage component shortages. This has made entry-level models more expensive, making it harder for some consumers to afford them.
Available through Klarna and accessible via Apple Stores, the Apple Store app, and online, the Apple Upgrade plan operates more like a lease. Customers can choose between 12-, 24-, and 36-month terms for iPhones, Macs, iPads, and Apple Watches. At the end of a lease term, users can return the device and upgrade to a newer model, buy the current device for a single payment, or walk away entirely. If no option is chosen, the lease will convert to a month-to-month agreement for up to six months, with potential increases in monthly payments before a final purchase fee is charged.
Who it’s for and what’s missing
The program skips some of Apple’s most budget-friendly models. For example, the Mac Mini and MacBook Neo are not available through the new leasing option. The base-level iPad and the Apple Watch SE 3, as well as the iPhone 16, also fall outside the eligible range. This means that buyers looking for the most affordable options will not find them here.
In contrast, the iPhone leasing is more comprehensive. All models from the iPhone 17 lineup are eligible, including the 17, 17e, and 17 Pro, with the lowest starting cost at $17.99 a month. This makes the iPhone Upgrade Program the most similar in structure to the new Apple Upgrade plan.
What’s different and what to watch
Apple has officially replaced its older iPhone Upgrade Program with the new Klarna-backed option in the U.S., a shift that may frustrate longtime users who were used to the previous terms. One key difference is that AppleCare is not included with the lease. Customers must purchase it separately. Additionally, AppleCare has also seen price increases, likely due to the rising costs of replacement parts used in the extended service program.
Klarna, the financial partner managing the leasing agreements, has already faced criticism. On social media and online forums, some users have questioned Apple’s decision, with one comment calling it the worst possible choice. Others have pointed to the potential financial implications of leasing, with some calculations showing how even small returns from cryptocurrency mining are outpaced by the costs of the leasing program.
Despite the changes, Apple is offering multiple pathways for customers. Alongside the leasing option, users can choose to buy a device outright, finance through their Apple Card, or use carrier financing for phones, giving them more flexibility based on their preferences and needs.
Apple Upgrade is only available in the United States and includes unlocked iPhones with a required carrier selection at checkout. Carriers supported include AT&T, Verizon, and T-Mobile. A postpaid plan is mandatory for Apple Upgrade, and prepaid plans are not an option. Ownership of the device is not granted at the end of the lease term unless the final payment is made, which is calculated as the device's cost minus the amount paid during the lease. Missing a payment doesn’t lock out features or services, but it is rolled into the next month’s payment. Missing three payments in a row results in lease termination, with the full balance due immediately. Klarna will deduct the device's value when it’s returned, and accounts are sent to collections if the device isn’t returned or the balance isn't paid. No late fees are charged, but missed payments may affect credit scores. AppleCare+ is not included with the lease and must be bought separately at $9.99 to $13.99 per month, or AppleCare One for $19.99 per month, which covers three devices. Damage to an iPhone results in charges, unless AppleCare+ is purchased. The iPhone Upgrade Program is discontinued, but current members are not required to switch yet. The Apple Card Monthly Installments option remains available for zero-interest financing, granting full ownership. Apple Upgrade does not support trade-ins when upgrading to a new device, and trade-ins are split across monthly payments. A soft credit check is used for approvals, so credit scores aren't impacted. Klarna doesn’t accept some credit cards like AMEX, Chase, or Capital One, but the Apple Card can be used for payments.
Andrew E. Freedman, a senior editor at Tom's Hardware, has been following this development closely. With expertise in laptops, desktops, and gaming, he continues to provide analysis and insights on Apple's evolving product and service offerings. Follow Tom's Hardware for more in-depth coverage of technology news, reviews, and analysis.