The Apple Upgrade program is reportedly launching in the United States on Tuesday, July 28, through a partnership between Apple and Klarna. MacRumors, citing Bloomberg’s Mark Gurman, says the new leasing and financing option will cover most iPhone, iPad, Mac and Apple Watch models.
The program arrives as Apple and the wider consumer-electronics market face higher hardware costs. It also signals a shift in how Apple wants customers to think about upgrades: less as a one-time purchase and more as a managed monthly payment with options at the end of the term.
How Apple Upgrade is expected to work
According to the report, Apple Upgrade will offer 24-month terms for iPhones and Apple Watches and 36-month terms for iPads and Macs. Customers will be able to pay off a device early, upgrade before the term ends, keep the device or return it when the financing period is over.
Klarna is known for buy now, pay later services, and the Apple program is expected to require a soft credit check. Additional fees may apply in some cases. Apple is expected to advertise the plan as a way to offer lower monthly payments than some current financing options.
Not every product is expected to qualify. The report says some lower-priced devices, including Apple Watch SE, the entry-level iPad, iPhone 16 and MacBook Neo, will not be eligible. That suggests Apple is targeting customers buying current mainstream and premium hardware rather than every entry-level product in the lineup.
The iPhone Upgrade Program may wind down
One of the biggest changes is that Apple reportedly plans to stop accepting new iPhone Upgrade Program sign-ups once Apple Upgrade launches. The existing iPhone Upgrade Program has been familiar to many U.S. customers because it bundles a path to a new iPhone with AppleCare+ coverage.
The new Apple Upgrade program apparently will not include AppleCare+ by default. That matters because monthly payment comparisons can look attractive until coverage is considered. Buyers who want accident protection or extended support should check whether AppleCare+ must be purchased separately and how that changes the total cost.
Why Apple is changing device financing now
Apple has strong reasons to simplify and repackage financing. Hardware prices are rising across parts of the industry, and customers are keeping devices longer. A broader upgrade program can reduce sticker shock by spreading payments over time while encouraging people to refresh more regularly.
The program also gives Apple one financing story across several product categories. Instead of separate upgrade paths for iPhone and different financing offers for other devices, Apple can push a single brand that covers phones, tablets, Macs and watches. That is especially useful for customers buying into multiple Apple products at once.
What buyers should compare before signing up
Monthly payments are only one part of the calculation. Buyers should compare the total amount paid, upgrade timing, return requirements, early payoff rules, AppleCare+ cost, credit terms and any fees. A lower monthly payment may still cost more over the full term if the user keeps the device or adds protection separately.
For Apple, the program could make expensive hardware feel more accessible during a period of price pressure. For customers, it may be convenient, but it should be treated as a financing contract rather than a discount. The cleanest choice will depend on whether the buyer upgrades often, needs protection coverage and prefers owning devices outright.
Source: MacRumors
