Apple Inc. has launched Apple Upgrade, a new device leasing program in the United States, partnering with Klarna to offer customers flexible monthly payment options for its hardware lineup. The program, available online and at Apple Store locations, replaces the previous iPhone Upgrade Program and iPhone Payments. Monthly lease prices start as low as $17.99 for iPhone, $11.99 for Apple Watch, $24.99 for Mac, and $11.99 for iPad, aiming to lower the barrier to entry for premium devices.

Program Structure and Eligibility

Apple Upgrade provides leasing terms of 12 or 24 months for iPhone and Apple Watch, and 24 or 36 months for Mac and iPad. The service is subject to credit approval by Klarna, which conducts a soft credit inquiry that does not impact the user's credit score. Eligible customers can further reduce monthly payments by trading in existing devices through Apple Trade In. Additionally, users paying with Apple Card earn 3 percent Daily Cash back on lease payments.

At the end of the lease term, customers have three options: upgrade to the latest generation device, purchase the current device with a one-time payment, or return it to exit the program. Leases are available only to U.S. residents (excluding territories) who are at least 18 years old, have a valid Social Security Number or ITIN, and possess an accepted credit or debit card.

Device Lineup and Pricing

The program covers a wide range of Apple’s current hardware, including the iPhone 17 series, Apple Watch Series 11 and Ultra 3, MacBook Air and Pro, iMac, Mac Studio, iPad Air, iPad Pro, and iPad mini. Certain models, such as the iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16), and Studio Display, are excluded from the program.

Transition from Previous Programs

With the launch of Apple Upgrade, Apple will no longer offer the iPhone Upgrade Program or iPhone Payments in the United States. Customers currently enrolled in the iPhone Upgrade Program will have the option to lease a new device with Apple Upgrade, finance with Apple Card Monthly Installments, purchase the product outright, or choose carrier financing. Existing leases are not automatically converted; eligible customers must opt into the new program.

What the Numbers Show

The introduction of Apple Upgrade signals a strategic shift towards subscription-based revenue models for hardware, potentially increasing customer retention through recurring lease cycles. By integrating with Klarna and offering lower entry points (e.g., $11.99/month for an iPad), Apple aims to capture price-sensitive consumers while maintaining high average selling prices through trade-in incentives and upgrade cycles. The exclusion of older models like the iPhone 16 suggests a focus on driving sales of the latest generation devices, such as the iPhone 17 series, thereby accelerating inventory turnover for newer SKUs.

Apple plans to overhaul its MacBook Air, iMac, and MacBook Pro lines to meet growing demand for artificial intelligence capabilities. The technology giant intends to redesign these core products to better support AI workloads, marking a strategic shift in its hardware development roadmap.

The reported overhaul encompasses the MacBook Air, iMac, and MacBook Pro models. By focusing on these specific lines, Apple aims to enhance the performance and efficiency of its devices for AI-driven tasks. This move reflects the increasing importance of hardware optimization in supporting advanced software features.

Product Lineup Updates

The following devices are slated for redesign:

• MacBook Air
• iMac
• MacBook Pro

These updates are part of a broader push to ensure Apple's hardware ecosystem remains competitive in the rapidly evolving AI landscape.