Apple Upgrade Leasing Program: Complete Guide to the July 28, 2026 Launch with Klarna

What Devices Are Covered by Apple Upgrade?

Apple Upgrade covers most models across four product lines :

• iPhone (excluding some lower-tier models like iPhone 16)
• iPad (excluding entry-level iPad)
• Mac (including MacBook Air, MacBook Pro, iMac, Mac Studio)
• Apple Watch (excluding Apple Watch SE)

The program is designed to make higher-priced devices more accessible through monthly payments rather than a single large purchase . It will be available both online and in Apple Stores across the U.S. .

Lease Terms: 24 Months or 36 Months

The program requires a soft credit check that does not affect your credit score . At the end of the lease term, customers have three options: upgrade to a newer device, return the device with no further obligation, or pay a residual amount to keep it. Some options may carry extra fees, though the exact fee structure has not been fully detailed .

A notable difference from the old program: AppleCare+ is not automatically bundled with Apple Upgrade leases . Customers who want extended coverage will need to purchase it separately.

How Apple Upgrade Differs from the Discontinued iPhone Upgrade Program

The iPhone Upgrade Program launched in 2015 and was a 24-month interest-free installment loan that bundled AppleCare+ and allowed customers to upgrade to a new iPhone after 12 months . It was discontinued in the UK in late January 2026 and in the U.S. in February 2026 . Apple Upgrade is a fundamentally different product.

Key differences:

• Ownership model — Lease vs. Purchase: The old program was an installment purchase where you owned the device after completing payments. Apple Upgrade is a true lease: you rent the device and must return it or pay extra to keep it at the end of the term . One analyst described it as "structured much closer to how you get a car" .
• AppleCare+: Previously bundled in the monthly payment; now sold separately .
• Upgrade timing: The old program allowed an upgrade at 12 months (halfway through the term). Apple Upgrade requires completing the full 24- or 36-month term unless early-upgrade fees apply .
• Device scope: The old program was iPhone-only. Apple Upgrade covers iPhones, iPads, Macs, and Apple Watches .
• Financing partner: Barclays (UK) and Apple's own financing (US) have been replaced by Klarna as the exclusive financial backer .

Apple's Evolving Relationship with Klarna

The partnership between Apple and Klarna has deepened dramatically over several years, evolving from rivals to partners to core infrastructure:

• 2023 — Apple launched its own "Apple Pay Later" BNPL service, positioning itself as a direct competitor to Klarna .
• October 2024 — Klarna became available as a buy-now-pay-later option within Apple Pay in the U.S. and UK for online and in-app purchases . Klarna also became an official Apple reseller with its own storefront .
• September 2025 — Klarna expanded to in-store Apple Pay purchases on iPhone in the U.S. and UK .
• November 2025 — Klarna (via Apple Pay) rolled out in Denmark, Spain, and Sweden, with France to follow .
• July 2026 — Klarna becomes the exclusive financial backer of Apple's first-party device leasing program, Apple Upgrade .

In roughly three years, Apple and Klarna went from competing in the buy-now-pay-later space to Klarna powering Apple's own hardware leasing infrastructure.

Context: Recent Apple Hardware Price Increases

The Apple Upgrade program launches just one month after Apple implemented some of its largest price increases in years. On June 25, 2026, Apple raised prices sharply across multiple product lines, citing soaring memory and storage chip costs driven by AI datacenter buildout :

Many Mac and iPad models saw increases of 18–33%, with some configurations rising by as much as $1,300 . The price hikes affected Macs, iPads, Apple TV, HomePod, HomePod mini, and Vision Pro, but notably did not include iPhones or Apple Watches at the time . Apple said it could no longer absorb the memory chip cost surge driven by AI infrastructure demand .

The timing of these price hikes in late June, followed by the Apple Upgrade leasing launch in late July, is not coincidental. The new program is partly designed to soften sticker shock by spreading higher device costs into monthly payments . For a customer facing a $1,299 MacBook Air (up from $1,099), a 36-month lease makes the upfront cost less daunting.

What This Means for Customers

For Apple customers accustomed to the old iPhone Upgrade Program, the switch to a true leasing model represents a significant change. The most important considerations:

• You no longer build equity in the device. At the end of a lease, you must return it or pay a residual amount to keep it .
• AppleCare+ is a separate purchase, which could change the monthly cost calculation .
• The upgrade cycle is longer. Where the old program allowed annual upgrades, Apple Upgrade requires completing the full term unless early-upgrade fees apply .
• The program covers more devices, so Mac and iPad owners now have access to a similar financing model previously limited to iPhone .

For those evaluating whether Apple Upgrade is worthwhile, the math depends on upgrade frequency. Customers who upgrade every 2–3 years may find the lease convenient. Those who keep devices longer may be better served by traditional financing or outright purchase, since leasing offers no ownership at the end of the term without a buyout payment.

Apple Upgrade is a major pivot in Apple's device sales strategy—one that shifts customers from ownership to subscription and locks Klarna into a central role in Apple's hardware business. Whether it becomes the default way people buy Apple devices will become clearer after the July 28 launch.