Apple's new Apple Upgrade program lets customers lease iPhones, Macs, and iPads for lower monthly payments, starting at $17.99 for an iPhone 17e. The move comes after price hikes and ahead of expected iPhone increases.
Alpha Score of 66 reflects moderate overall profile with strong momentum, weak value, strong quality, strong sentiment.
Apple has a new way to lower the monthly cost of its devices. Lease them.
On Tuesday, the company announced Apple Upgrade, a leasing program in partnership with Klarna. The structure works like a car lease. Customers pay a monthly fee for one to two years on iPhones and Apple Watches, or two to three years on Macs and iPads. At the end of the term, they can return the hardware or pay the remaining balance to keep it. Apple will recycle or resell returned devices depending on condition.
The monthly price is lower than financing. A base iPhone 17e through Apple Upgrade costs $17.99 a month. Financing the same phone to own runs $24.95 a month. Leasing an iPhone 17Pro Max with 2TB of storage starts at $58.43 a month. Macs start at $24.99 a month, iPads at $11.99 a month.
The program arrives after Apple raised MacBook and iPad prices in June by $100 to more than $1,000 across models. The company cited a global memory crunch. Apple is widely expected to raise iPhone prices in September when it launches its new lineup. Shoppers are also holding onto smartphones for longer, which pressures upgrade cycles.
Apple also said it is discontinuing its $42 a month iPhone Upgrade Program in the US. The old program offered a single price for an iPhone and included AppleCare. The new program does not include AppleCare in the base lease prices. Customers who want accidental damage coverage will pay extra. Klarna requires a soft credit check to enroll.
The shift to leasing addresses two problems. Rising hardware prices make the upfront cost of a new iPhone or Mac harder to swallow. Leasing lowers the monthly payment, which can attract price-sensitive shoppers. The structure also gives Apple a recurring revenue stream and a way to keep customers on a shorter upgrade cycle. Returned devices can be resold or recycled, creating a secondary market.
For shoppers who reliably upgrade every year or two, the lease may be cheaper than financing. Someone who keeps a device for four years could pay more in total lease payments than the purchase price. That trade-off mirrors car leasing.
Apple is expected to raise iPhone prices in September when it launches its new lineup. The leasing program gives customers a way to manage that increase.
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