Apple Upgrade launches in the US, turning hardware into a service
As recently predicted, Apple-as-a-service became a reality July 28, when Apple introduced its new leasing program with Klarna. The scheme is only available to US residents, not business.
Apple Upgrade offers eligible customers that chance to pay a monthly upgrade fee for most Apple devices and replaces the iPhone Upgrade Program, which no longer operates.
It offers 12- and 24-month leasing options for iPhone and Apple Watch, and 24- and 36-month leasing options for Mac and iPad. Leasing prices start as low as $17.99 per month for iPhone, $11.99 for Apple Watch, $24.99 for Mac, and $11.99 for iPad.
Customers can enrol to the scheme at Apple Store online, in the Apple Store app, and at US Apple Stores. Customers can also lower their monthly lease payment by trading in their currently owned device, while those using Apple Cards can earn 3% Daily Cash back.
What Apple said
“At Apple, we put the customer at the center of everything we do,” said Karen Rasmussen, Apple’s vice president of the Apple Store online, “and we’re thrilled that Apple Upgrade offers our customers, both online and in-store, a more flexible way to pay for the products they love.”
How it works
Apple and Klarna have built a simple enrollment process that provides customers with detailed information regarding their leasing options before they enrol. The application and approval process has been streamlined, and applicants will be subject to a soft credit inquiry that will not impact their credit score.
At the end of the lease term, customers can upgrade their device to the latest generation, purchase it with a one-time payment, or simply return it and exit the program. The Klarna app holds all the relevant leasing information.
When eligible, customers currently enrolled in the iPhone Upgrade Program will have the option of leasing a new device with Apple Upgrade, financing with Apple Card Monthly Installments, purchasing the product outright, or choosing carrier financing.
- iPhone leases start at $17.99.
- Apple Watch leases start at $11.99.
- Mac leases start at $24.99.
- iPad leases start at $11.99.
Example payments:
For an iPhone 17 Pro 256GB with a purchase price of $1,099 (excluding taxes and any trade-in credit), the typical monthly payment is $31.99 (excluding taxes and any trade-in credit) for a 24-month lease term and $45.99 (excluding taxes and any trade-in credit) for a 12-month lease term.
For an Apple Watch Series 11 (GPS) 42mm with a purchase price of $399 (excluding taxes and any trade-in credit), the typical monthly payment is $11.99 (excluding taxes and any trade-in credit) for a 24-month lease term and $21.99 (excluding taxes and any trade-in credit) for a 12-month lease term.
For an 11-inch iPad Pro 256GB with a purchase price of $1,199 (excluding taxes and any trade-in credit), the typical monthly payment is $24.99 (excluding taxes and any trade-in credit) for a 36-month lease term and $31.99 (excluding taxes and any trade-in credit) for a 24-month lease term.
For a 14-inch MacBook Pro 16GB with a purchase price of $1,999 (excluding taxes and any trade-in credit), the typical monthly payment is $38.99 (excluding taxes and any trade-in credit) for a 36-month lease term and $53.99 (excluding taxes and any trade-in credit) for a 24-month lease term.
Beware: It is important to point out that the Apple Upgrade system is for a consumer lease, not a purchase or loan. Your first monthly payment is due approximately 30 days after device is shipped or available for pickup. Lease approval is subject to eligibility and is based on creditworthiness. Monthly payments are based on the selected device and lease term.
The small print
- Closing your lease and returning your device terminates your lease.
- You may incur substantial fees if you terminate your lease before the end of your initial lease term.
- You may have the option to upgrade to a new device by entering into a new lease agreement and returning your prior device.
- If you upgrade, your new monthly payments may be greater than your prior monthly payments.
- If you do not upgrade, terminate your lease, or purchase your device by the end of the initial lease term, the lease will convert to a month-to-month lease for up to six months.
- Your monthly payments may increase during the month-to-month periods.
- If you take no action at the end of your extension period, you will be charged the purchase fee under your lease.
- You will not own your device at the end of your lease, unless you pay the purchase fee.
- Insurance is not included in your lease, and you may incur damage fees if the device is lost, stolen, or not returned in the condition required by the lease.
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