Apple Upgrade: 20 Things to Know Before Renting an iPhone, iPad, or Mac

Apple has discontinued the iPhone Upgrade Program in favor of a new Apple Upgrade rental option made available in partnership with Klarna. Apple Upgrade offers customers the chance to get iPhones, iPads, Macs, and Apple Watches at cheaper prices than before, but there are some things worth knowing about it.

We’ve put together some smaller pieces of information that you should be aware of before you decide to sign up.

• United States only – Apple Upgrade is only available in the United States, and it is unclear if it will expand to other countries.
• Unlocked iPhones – iPhones rented with Apple Upgrade are unlocked, but you must choose a carrier at checkout. Carrier options include AT&T, Verizon, and T-Mobile. Since the iPhone is unlocked, you can change carriers after purchase or add a second eSIM.
• Postpaid plans only – You must have a postpaid plan through a supported carrier to use Apple Upgrade. Prepaid plans are not an option when renting.
• Possession – You do not own the iPhone you lease at the end of the lease term unless you pay the final amount. Your final payment is the cost of the device when you rented it, minus what was paid during the rental. If you do not want to purchase the iPhone or want to upgrade, you must return the leased iPhone.
• No lock – iOS 27 beta code suggested Apple might restrict apps and services for missed payments on a rented device, but that’s not for Apple Upgrade. Missing a payment won’t change how your iPhone works.
• Missed Payments – If you miss a payment, it is rolled into your next month’s payment. There are no late fees.
• Three shots – If you miss three consecutive payments, Klarna automatically ends your rental and the full iPhone balance is due immediately. Klarna will subtract the value of the iPhone from the amount owed when you return it, thereby reducing the refund amount. If you don’t return the iPhone or pay the balance, Klarna will send the account to collections.
• No fees – There are no fees for non-payment, but you are subject to the rules for terminating the lease. Missing a payment can also impact your credit score.
• AppleCare+ – Unlike the iPhone Upgrade Program, AppleCare+ is not included in the Apple Upgrade rental fee and must be purchased separately. ‌AppleCare‌+ for iPhone costs $9.99 to $13.99 per month, or you can get ‌AppleCare‌ One for $19.99 per month. ‌AppleCare‌ One covers three devices.
• Damage – Klarna will charge for any damage, and Klarna assesses the damage, not Apple. You will have to pay for any damage when returning a device. If you have ‌AppleCare‌+, you will only pay the ‌AppleCare‌+ service fee.
• iPhone Upgrade Program – iPhone Upgrade Program is discontinued. Current members do not need to upgrade to Apple Upgrade or another purchase option at this time, but will need to do so the next time they upgrade.
• Apple Card Monthly Payments – Apple Card members can still choose to finance an iPhone interest-free using the ‌Apple Card‌ monthly installments option. An iPhone purchased with the ‌Apple Card‌ is exclusive property.
• Ineligible products – Some Apple devices cannot be purchased with Apple Upgrade, including iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad A16, and Studio Display.
• No EDU – You cannot use Apple Upgrade to receive discounted educational rates.
• No refurbished devices – You cannot purchase a refurbished Apple device with Apple Upgrade.
• Terminate a lease early – You can end a lease early, but you must pay the remaining lease amount and then return the device.
• Redemption of a lease – You can repay a lease early without penalty.
• Soft credit check – There is no rigorous credit check when initiating a lease, so getting approved for a lease will not affect your credit.
• Exchanges – When you initiate a rental, you can trade in an old iPhone. The trade-in value is spread across your monthly payments instead of being applied upfront. You cannot perform an exchange when returning a device to upgrade to a new one.
• Payment restrictions – Klarna does not accept credit cards, so purchases must be made with a debit card, ACH payment, or direct debit. Online banking apps like Cash App don’t work either.

More details

We have more information on Apple Upgrade in our full article, along with pricing details.