Apple has introduced a new way for customers to own its premium devices without paying the full price upfront. The tech giant has launched Apple Upgrade, a subscription-style leasing programme in the United States that allows customers to use the latest iPhone, iPad, Mac and Apple Watch by paying a fixed monthly fee.
The new programme reflects Apple’s growing focus on making its premium products more affordable while encouraging users to upgrade to newer devices more frequently. Rather than purchasing a device outright, customers can lease it for a specified period and later choose whether to return it, buy it, or upgrade to the latest model.
The service replaces Apple’s earlier iPhone-only financing programme with a broader offering that includes several of the company’s most popular devices. Apple Upgrade is available through Apple Stores, the Apple Store app and Apple’s official website across the United States.
The programme has been introduced in partnership with global payments and financial services company Klarna, which will handle financing approvals. Apple said customers can complete the application process online with a soft credit check, meaning it does not affect their credit score.
The lease duration varies depending on the product. Customers can lease iPhones and Apple Watches for 12 or 24 months, while iPads and Mac computers are available on 24- or 36-month plans. Monthly payments begin at $17.99 for an iPhone, $11.99 for an iPad or Apple Watch, and $24.99 for a Mac, making Apple’s premium hardware more accessible through smaller recurring payments.
At the end of the lease period, customers have three options. They can return the device without any further commitment, purchase it by paying its remaining value, or switch to a newer Apple device by starting a fresh lease. This flexible model gives users greater freedom to stay updated with Apple’s latest products without making a significant upfront investment.
Apple says customers can also trade in eligible older devices to reduce their monthly payments. Those using the Apple Card will continue to receive three per cent Daily Cash rewards on their monthly lease payments, adding another benefit for existing Apple users.
The launch marks a significant shift in Apple’s retail strategy. While the company has long offered instalment-based payment plans, Apple Upgrade introduces a leasing model similar to those commonly used for cars and other high-value products. Instead of focusing solely on ownership, the programme is designed around continuous access to the latest technology.
Industry experts believe the move could strengthen Apple’s upgrade cycle at a time when consumers are holding on to smartphones and laptops for longer than before. With device prices steadily increasing, many buyers have delayed replacing their gadgets. By lowering the initial financial burden, Apple hopes to encourage customers to upgrade more regularly and remain within its ecosystem.
The programme could also benefit Apple’s growing refurbished device business. Returned products from lease agreements can be refurbished and resold, extending the life of devices while supporting the company’s sustainability goals. Apple has increasingly highlighted its efforts to reduce electronic waste and promote a circular economy by reusing and recycling products wherever possible.
Existing members of Apple’s iPhone Upgrade Program will be able to transition to the new Apple Upgrade service. At the same time, Apple has discontinued its previous iPhone Payments financing option, making Apple Upgrade its primary hardware financing and leasing programme in the US market.
For customers, the biggest attraction is affordability. Premium Apple products often come with high price tags, making them difficult for many buyers to purchase outright. Monthly subscription payments spread the cost over a longer period, allowing users to access the latest technology without making a large one-time payment.
However, financial experts advise customers to understand the terms carefully before signing up. Leasing differs from buying a product through instalments because ownership is not automatic. Customers who decide to keep the device at the end of the lease will need to pay its remaining value, while those returning it may be charged if the product has damage beyond normal wear and tear.
The launch comes as competition in the premium technology market intensifies. Smartphone makers are increasingly exploring subscription and financing models to attract customers facing rising living costs and longer replacement cycles. Apple’s move is expected to put pressure on rivals to expand similar offerings for their own products.
Although Apple Upgrade is currently available only in the United States, industry observers believe the company could eventually expand the programme to other markets if customer response is positive.
With Apple Upgrade, the company is moving beyond simply selling devices and towards offering technology as an ongoing service. For consumers, it provides greater flexibility, predictable monthly costs and easier access to Apple’s latest innovations, while helping the company build stronger long-term relationships with its customers.