Apple today launched Apple Upgrade, a new US rental program for iPhone, iPad, Mac and Apple Watch. Apple has partnered with Klarna for Apple Upgrade, and it replaces the current iPhone Upgrade Program and iPhone Payments.
Apple Upgrade has lower base prices than the iPhone Upgrade Program, with iPhones available starting at $17.99 per month and the Apple Watch starting at $11.99 per month. Macs can be rented from $24.99 per month and iPads from $11.99 per month. AppleCare+ is optional and not included in the rental price, with customers also able to opt for AppleCare One.
There are 12 and 24 month lease options for the iPhone and Apple Watch, as well as 24 and 36 month lease options for the Mac and iPad. Rental cost varies by device and is lower with a device trade-in applied on a monthly basis. Apple offers some sample prices, less taxes and trade-in credits:
- iPhone 17 Pro 256 GB ($1,099) – Typical monthly payment is $31.99 with a 24-month lease or $45.99 with a 12-month lease.
- Apple Watch 42mm Series 11 ($399) – The typical monthly payment for a 24-month lease term is $11.99 per month, or $21.99 for a 12-month lease term.
- 256GB iPad Pro ($1,199) – Typical monthly payment is $24.99 for a 36-month lease term, or $31.99 for a 24-month lease term.
- MacBook Pro 14 inch 16 GB ($1,999) – Typical monthly payment is $38.99 for a 36-month lease and $53.99 for a 24-month lease.
When renting an iPhone, customers must choose a plan from AT&T, Verizon or T-Mobile, and prepaid plans are not eligible. iPhones must be rented with a carrier plan, but iPhones are unlocked so customers can change carriers if they want. MVNOs like Mint Mobile or Visible are not supported.
At the end of the rental period, customers can choose to return the device and exit the program, pay the remaining amount owed on the device with a one-time payment and keep it, or return it and upgrade to a new device with a new lease.
The refund amount is the difference between what was paid during the rental period and the retail price of the device, less any remaining trade-in credits. Klarna doesn’t charge a fee for the rental program, so an iPhone worth $1,099 can be rented and then purchased for $1,099 with no additional fees beyond taxes.
As with exchanges, Apple will send a pre-labeled, pre-paid shipping box for returns or device upgrades.
If you do not choose to pay the purchase fee at the end of the rental program, you will not take ownership of the device and will have to return it.
Apple is ending the iPhone Upgrade Program and iPhones can no longer be purchased with it. Current participants can continue making payments until their existing iPhones are paid off, but on the next purchase they will need to upgrade to Apple Upgrade or another payment option. Apple Card users can continue to purchase devices with the Apple Card monthly installment plan or choose Apple Upgrade and earn 3% daily cash back on lease payments made with Apple Card.
Apple Upgrade is available for online and in-store purchases. Customers can select their preferred rental option and, after a credit check, get instant approval from Klarna if they are eligible. Rental information such as billing schedule, total price and remaining payments can be managed in the Klarna app.
Most iPhone, iPad, Mac, and Apple Watch models are eligible for the Apple Upgrade, but the program cannot be used for purchases of iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16), and Studio Display. Apple Upgrade cannot be used with EDU discounts and rentals are not available for refurbished devices. Apple also excludes purchases made with the Apple Employee Purchase Plan and corporate, government, veterans, and military purchasing programs.
Small print
Lease participants can choose to end a lease early and return a device, but Apple says there may be “significant fees” for terminating a lease before the end of the term. The fee is the remaining amount of the lease, so terminating a lease three months early means paying the remaining three months. There are no fees for early repayment of a lease.
Customers must upgrade, terminate the lease, or purchase the device at the end of the lease term. If this does not happen, the lease converts to a month-to-month lease for a maximum term of six months. Monthly payments will remain the same, but if a trade-in credit was applied monthly, it ends at the end of the lease, so payments could increase. At the end of the monthly rental add-on, customers will be charged the purchase fee.
Damage to an iPhone, loss of an iPhone, or theft of an iPhone may result in charges. Klarna assesses the damage upon return and charges accordingly. With AppleCare+, the cost is the applicable service fees, but without these, the full cost of the assessed damages must be paid.
If a customer misses a payment, the payment is rolled over to the next month’s payment, but no late fees are charged. If there are three consecutive missed payments, the rental agreement ends and the customer must pay the entire outstanding balance less the value of the device when it is returned. If Klarna fails to recover payment, the matter will be referred to Klarna’s debt collection agencies. Apple says Klarna support offers a one-month payment deferral and an option to terminate the lease early with a repayment plan.
Rentals are limited to guests 18 years of age or older (or of legal age in their state of residence) with a valid SSN or ITIN. Customers must be residents of the United States and territories are excluded. A valid Apple account is required, as is a Klarna account and a credit or debit card.
Availability
Apple devices can be rented with Apple Upgrade in-store or online starting today.
