As expected, Apple has announced a new subscription program for its devices in the United States. Apple Upgrade allows consumers to pay a monthly fee for a device instead of making an (increasingly expensive) one-time payment. Once the lease is up, they can exchange their equipment for a newer model, keep the device or return it. There are additional fees to upgrade or retain a device, or to terminate the lease early.
Apple Upgrade will replace the iPhone Upgrade Program and iPhone payment options in the United States. Once eligible, those already enrolled in the iPhone Upgrade Program will be able to upgrade to Apple Upgrade to lease a new product, opt for monthly Apple Card installments, purchase their device outright, or upgrade to carrier financing.
The new program includes a range of options for iPhone, iPad, Apple Watch and Mac. Prices start at $18 per month for iPhone, $12 for Apple Watch and iPad, and $25 for Mac. However, you don’t benefit from the entire Apple product line: iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16), and Studio Display are not available for the Apple Upgrade program.
Leases last 12 or 24 months for iPhones and Apple Watches, and 24 or 36 months for iPads and Macs. Consumers will be able to refund their devices sooner for an additional fee. At the end of the period, customers can upgrade their device, purchase it with a one-time payment, or simply return it to an Apple Store to exit the program. The new upgrade program is run by Klarna and, just like a credit card, you’ll need to be approved before you can participate. Klarna provides an app where you can track payments and rental information. You can also add AppleCare to any of the devices on your lease.
Apple was reportedly considering a similar offering as late as 2024. However, the company is believed to have abandoned the idea due to financial oversight concerns. Additionally, Klarna was already available as a buy now, pay later option in Apple Pay.
Apple Upgrade debuts shortly after the company sharply raised prices on many iPad and Mac models. It’s widely expected that the next batch of iPhones (which Apple will certainly unveil in September) will be more expensive than previous models.
Updated, July 28, 2026, 9:17 a.m. ET: Clarification of rental periods and next steps for iPhone Upgrade Program members.
