Apple launches Apple Upgrade, a leasing subscription, on July 28, replacing the iPhone Upgrade Program. Klarna backs the leases, which span 24-36 months on iPhones, Macs, iPads and Watches.
Apple will shut down its iPhone Upgrade Program when it launches a new leasing offering called Apple Upgrade on Tuesday (July 28), Bloomberg reported.
The company will stop accepting new enrollments in the existing program, though current participants can keep using it for now, according to the report.
The shift marks one of the biggest changes in how Apple sells its products. Apple Upgrade works like a subscription. Users can pay off devices early, upgrade before the term ends, or keep the device until the lease expires. When the term is up, the device goes back to Apple, similar to a car lease.
Apple Upgrade will not include AppleCare, unlike the old program. It is structured as a lease rather than a financing plan. Klarna will back the new offering, replacing Citizens Bank, which financed the iPhone Upgrade Program.
The leasing program will support most iPhone, Mac, iPad and Apple Watch models. Digitaltrends reported it will launch in the United States first, offering 24-month leases on iPhones and Apple Watches and 36-month leases on Macs and iPads.
Apple wants to pitch the program as a way for customers to get lower monthly payments than current financing options provide. The company did not include the iPhone in a recent round of price increases, but analysts widely expect a price hike when the next model debuts in September.
Apple scrapped its earlier effort at a hardware subscription service in December 2024, after running into software bugs and concerns about regulatory scrutiny. Earlier that year, Apple shut down its buy now, pay later offering after the Consumer Financial Protection Bureau announced stricter BNPL rules. The company began promoting third-party BNPL programs from Affirm and Klarna instead.
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