Apple replaces its 11-year financing program with a Klarna-backed leasing plan

Apple is about to change how Americans pay for its hardware. On July 28, the company launches Apple Upgrade — a leasing program backed by fintech firm Klarna — ending the iPhone Upgrade Program that has run since 2015, per Bloomberg (Mark Gurman, July 21). The timing is no accident: Apple has already raised prices on several products this year and signaled more increases ahead.

The plan

Apple Upgrade offers 24-month lease terms on iPhone and Apple Watch, and 36-month terms on Mac and iPad. You make monthly payments, and at the end of the term you can keep the device, return it, or upgrade to a newer model. Klarna handles the financing; a soft credit check is required but won't affect your credit score.

One notable catch: budget models are excluded. The iPhone 16, Apple Watch SE, MacBook Neo, and entry-level iPad don't qualify — the program is aimed squarely at the premium end of the lineup.

What changes for buyers

The outgoing iPhone Upgrade Program bundled AppleCare+ with device financing, which made it a solid deal for buyers who wanted insurance alongside their payments. Apple Upgrade drops that bundle, so if you want extended coverage you'll need to buy it separately.

US carriers already offer 24–36 month installment plans with trade-in incentives, notes AppleInsider, so Apple is moving onto turf Verizon, AT&T;, and T-Mobile have occupied for years. Apple's edge is the early upgrade option: after 12 payments, you can swap to a newer device mid-lease — similar to T-Mobile's Jump program.

Early read

Klarna's stock jumped 9% on the announcement, reflecting how significant a partner Apple is for the BNPL (buy-now-pay-later) sector. The program is US-only at launch; no European rollout date has been announced. Monthly payment amounts haven't been disclosed yet — those details should surface when the program goes live on July 28.