Apple Upgrade Program Expands to Mac, iPad, and Watch With Klarna Leasing
Apple is replacing its long-running iPhone Upgrade Program with a broader device leasing service based on a partnership with buy-now, pay-later company Klarna. According to Bloomberg's Mark Gurman, the new Apple Upgrade program will go live in the United States on July 28 and will cover iPads, Macs, and Apple Watches for the first time.
New enrollments in the iPhone Upgrade Program will end on the same day, per Gurman. Customers already enrolled in the old plan can stay on it for now, though Apple has not said how long that option will remain open.
The Apple Upgrade program introduces tiered lease terms. iPhones and Apple Watches require a 24-month term, while iPads and Macs carry a 36-month commitment. At the end of the term, customers can return the device, trade it in for a newer model, or pay a fee to keep it.
Not every device is eligible. The Apple Watch SE, the entry-level iPad, the iPhone 16, and the base MacBook Air are excluded. Higher-end models in each category qualify.
A key change from the older program is the absence of bundled AppleCare+ coverage. The iPhone Upgrade Program included AppleCare+ as part of the monthly payment. The new program leaves device protection as a separate purchase, which lowers monthly payments but requires customers to buy insurance separately if they want it.
Apple is positioning the program primarily around affordability. The company plans to advertise lower monthly payments compared to its existing financing options, making higher-cost devices more accessible without requiring the full retail price upfront or through a standard installment plan.
What the Apple Upgrade Program Means for Shoppers
For consumers who regularly upgrade their Apple devices, the new leasing model offers more flexibility across a wider product range. Leasing a Mac or iPad fills a gap that the iPhone-only upgrade plan left open. The absence of mandatory AppleCare+ cuts both ways: lower monthly costs appeal to budget-conscious buyers, but anyone who wants coverage will need to add it separately, potentially narrowing the price advantage.
The exclusion of entry-level models suggests Apple is targeting mid-range and premium buyers. Customers interested in the Apple Watch SE or the base iPad will still need to buy outright or use standard financing.
Why This Matters
The shift from a single-product iPhone Upgrade Program to a multi-category Apple Upgrade program signals a strategic move by Apple to lock users into its hardware ecosystem on a recurring payment basis. By making iPads and Macs accessible through leasing, Apple reduces the upfront cost barrier that often keeps customers on older machines. The Klarna partnership also reflects a broader industry trend toward embedded lending at checkout, a model becoming standard across consumer electronics retail.
For shoppers, the question is whether the lower monthly payment justifies the lack of built-in insurance and the obligation to return the device or pay to keep it at the end of the term. Those who upgrade every two to three years regardless will likely find the terms favorable. Others may prefer the older program's all-in-one pricing.
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