Apple Upgrade program: Common questions, answered

Apple has launched Apple Upgrade, a new leasing program for iPhone, Apple Watch, Mac, and iPad, available online, in the Apple Store app, and at Apple retail locations across the United States. The program replaces the old Apple iPhone Upgrade program, which is winding down for new customers, and shifts financing duties from Citizens One to Klarna.

As tech prices continue to climb and smartphone sales decline, Apple Upgrade would give customers a new way to try the latest Apple devices. The program arrives just a couple of months before Apple is expected to unveil the iPhone 18.

Unlike the previous program, which functioned as a loan that eventually transferred ownership of the device to the customer, Apple Upgrade is structured explicitly as a lease. Customers pay a monthly fee to use a device for a fixed term, and at the end of that term, they can upgrade to something new, pay a purchase fee to keep the device, or return it and walk away. If they do nothing, the lease automatically converts to a month-to-month arrangement for up to six months, with payments that may increase during that stretch.

If you're considering leasing your next iPhone or Apple Watch, we've put together answers to some of the most common questions about how the new Apple lease program works.

What is the Apple Upgrade program?

Apple Upgrade is a Klarna-backed leasing program for U.S. shoppers that launched on July 28, and it allows customers to lease new Apple devices for a period of 12, 24, or 36 months, depending on the product. For the Apple iPhone upgrade program, leasing prices start at just $17.99 per month, but users can lower their monthly payments by trading in their current iPhone through Apple Trade In. You can learn more about the program at the Apple newsroom or sign up to enroll at Apple's website.

What devices are eligible?

The Apple Upgrade covers most new iPhone, Apple Watch, Mac, and iPad devices. The eligible devices are:

• iPhone 17

• iPhone 17e

• iPhone 17 Pro

• iPhone Air

• Apple Watch Series 11

• Apple Watch Hermès Series 11

• Apple Watch Ultra Watch 3

• Apple Watch Hermès Ultra 3

• M5 MacBook Air

• M5 MacBook Pro (M5 Pro and M5 Max also included)

• M4 iPad Air

• iPad Mini (A17 Pro Chip)

A handful of older or budget models are excluded, including the iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac Mini, iPad (A16), and Studio Display. The Vision Pro is also excluded.

How long are the lease terms?

iPhone and Apple Watch leases run for either 12 or 24 months. Mac and iPad leases run 24 or 36 months. Not every term is available on every device.

How much does it cost per month?

Pricing starts at $17.99 for iPhone, $11.99 for Apple Watch, $24.99 for Mac, and $11.99 for iPad, though actual payments vary by device, storage tier, and lease length. No security deposit is required, and trading in a current device through Apple Trade In can lower the monthly rate.

Do I own the device at the end of the lease?

No, not unless you pay the device's purchase fee at the end of the term. Otherwise, you're expected to either upgrade to a new lease or return the device in acceptable condition. Returning a damaged, lost, or stolen device can trigger additional fees, and insurance isn't included in the lease itself.

Is there a credit check?

Yes, but it's a soft inquiry that doesn't affect your credit score. Final approval, including any monthly payment you're offered, depends on Klarna's assessment of your creditworthiness.

What about AppleCare?

AppleCare isn't automatically bundled with Apple Upgrade the way it was with the old iPhone Upgrade Program. Customers can add AppleCare+ or AppleCare One separately to cover accidental damage, theft, loss, and battery service.

Can I use Apple Card with this?

Yes, payments made with Apple Card earn 3 percent Daily Cash back, and Apple Card Monthly Installments remain a separate, distinct financing option outside of Apple Upgrade for customers who'd rather buy a device outright over time.

What happens to people already in the iPhone Upgrade Program?

Existing members aren't required to do anything. They can keep making their monthly payments under their existing agreement with Citizens One, and once they complete their 24-month term, the device is theirs to keep, no purchase fee required.

When they're ready for a new iPhone, they'll have the option to switch into Apple Upgrade, finance through Apple Card Monthly Installments, buy a device outright, or go through carrier financing instead.

Who's eligible to lease through Apple Upgrade?

You need to be a U.S. resident at least 18 years old, have a valid Social Security number or ITIN, hold an Apple Account in good standing, have a Klarna account, and have an accepted credit or debit card on file.

Leasing an iPhone requires enrolling in a postpaid plan with AT&T, T-Mobile, or Verizon — prepaid plans don't qualify, though leased iPhones are unlocked.

What happens if I miss a payment?

Recently, 9to5Mac found code in the iOS 27 beta that suggested Apple and lenders could place phones in "Restricted Mode" if a user falls behind on payments. However, that's not part of the Apple Upgrade program. Instead, missed payments will automatically be added to the next month's bill.

MacRumors also reports that there are no late fees for missed payments, but three missed payments will result in Klarna terminating your contract.