Apple will soon be offering a new leasing program for iPhones, Macs, iPads, and Apple Watches, according to a report by Bloomberg’s Mark Gurman. Called Apple Upgrade, the program will reportedly be available starting on July 28.
If you’re familiar with car leasing or the Apple iPhone Upgrade Program, the Apple Upgrade may work similarly. Customers choose an iPhone to purchase, which is divided evenly among 24 monthly payments. Assuming payments are made on time, users can choose to upgrade to a new model after 12 payments, keep the device at the end of the lease, or return the device. Some additional fees may be incurred, and a soft credit check is required for approval.
iPhone and Apple Watch leases will be for 24 months, while Macs and iPads will have 36-month leases, Gurman reports. It’s unclear whether users will be able to upgrade after 12 payments like the iPhone program.
One major limitation is that some devices are not available through Apple Upgrade. Gurman reports that the Apple Watch SE, iPhone 16, entry-level iPad, and the MacBook Neo will not be available through the program. It’s not clear whether the program includes the iPhone 17e, which is currently ineligible for the iPhone Upgrade program.
AppleCare also appears not to be required in Apple Upgrade leases, while it is part of purchases made with the iPhone Upgrade Program. Business and education purchases are not eligible for Apple Upgrade.
Apple Upgrade is financially backed by Klarna, a financial services company that is known for its buy-now-pay-later programs. Gurman reported years ago that Apple “had been eyeing its own in-house iPhone and hardware subscription program” four years ago, but he says Apple abandoned the plan in 2024.
Apple Upgrade comes just a month after the company announced price hikes for Macs and iPads. Apple did not change prices for iPhones and Apple Watches, but the company is expected to release new versions of these devices in the fall, which could bring higher prices.
