Apple has announced a new device subscription program in the United States that lets customers pay monthly for hardware instead of buying it outright. The program, called Apple Upgrade, covers iPhone, iPad, Apple Watch, and Mac, and gives customers the option to swap for a newer model when the lease ends.
According to Engadget, prices start at $18 per month for iPhone, $12 per month for both Apple Watch and iPad, and $25 per month for Mac. Lease terms run 12 or 24 months for iPhones and Apple Watches, and 24 or 36 months for iPads and Macs. Customers who want to end the lease early or upgrade before the term ends will pay an additional fee.
At the end of a lease, customers have three options: upgrade to a new device, buy the current device with a one-time payment, or return it to an Apple Store.
The program is managed by Klarna, the Swedish financial services company already available as a buy now, pay later option in Apple Pay. Like a credit card application, customers must be approved before they can participate. Klarna provides an app to track payments and lease details. Customers can also add AppleCare coverage to any device in their lease.
Apple Upgrade will replace both the long-running iPhone Upgrade Program and the iPhone Payments option in the US. Customers already enrolled in the iPhone Upgrade Program will be able to switch to Apple Upgrade once they become eligible, at which point they can lease a new product, move to Apple Card Monthly Installments, purchase their device outright, or switch to carrier financing.
Not every Apple product is included. The iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16), and Studio Display are all excluded from the program.
Apple had reportedly explored a similar subscription offering as recently as 2024 but dropped the idea due to financial oversight concerns. The launch comes shortly after the company raised prices on several iPad and Mac models. The next iPhone lineup, expected to be revealed in September, is widely anticipated to carry higher prices than previous generations.
