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Apple has officially rolled out a revamped device leasing initiative called Apple Upgrade, expanding beyond iPhones to include iPads, Apple Watches, and Macs for the first time. The program, operated through Klarna, offers predictable monthly payments starting as low as $11.99 — a move that softens the sting of Apple’s recent price hikes, which were largely driven by the lingering industry-wide memory shortage (dubbed “RAMageddon”).
But don’t mistake this for a discount. While the total cost over the lease term adds up to the same retail price (plus financing fees in some cases), the psychological shift from a lump sum to a manageable monthly obligation could drive adoption among budget-conscious consumers.
Unlike the now-defunct iPhone Upgrade Program (which only covered iPhones and required an AppleCare+ plan), Apple Upgrade opens the door to multiple device categories. Here’s what’s available:
Notable omission: the budget-friendly MacBook Neo (the company’s most affordable laptop) is absent from the program, likely to preserve margins on entry-level buyers who may prefer outright purchase.
Apple Upgrade is powered by Klarna’s point-of-sale lending platform. Approval requires a soft credit check that doesn’t affect your credit score, and application takes “mere minutes,” according to Apple. Once approved, users manage their lease through the Klarna app, including tracking payments and options at lease end.
Lease terms vary by device category:
At the end of the term, customers have three choices:
Apple hasn’t publicly disclosed the exact one‑time purchase fee formula, but based on the structure, it’s expected to equal the device’s full MSRP minus the total monthly payments already made. That means you’re not saving money — just swapping timing.
The legacy iPhone Upgrade Program, which bundled an iPhone with AppleCare+ and offered annual upgrades, has been discontinued. Existing customers can stay on their current contract or switch to Apple Upgrade when their term ends. Notably, Apple Upgrade does not require AppleCare+, which earlier program mandated — a cost‑saving difference for those who don’t want extended coverage.
Apple’s expansion into multi‑category leasing mirrors moves by carriers and retailers that already offer monthly device installment plans. However, Apple’s direct‑to‑consumer approach via Klarna gives it more control over customer retention and data. For consumers, the benefit is convenience and a consolidated dashboard — no need to visit a carrier store.
While Apple hasn’t explicitly confirmed if the program includes interest or fees, Klarna’s typical model for longer‑term financing does involve interest charges (often 0% APR for shorter terms, but variable for longer ones). Prospective lessees should read the fine print carefully.
Apple Upgrade is a financial tool, not a price cut. If you prefer predictable payments and upgrade flexibility, it’s worth considering — especially for pricey Macs and iPads. But if your goal is to minimize total cost, buying outright or via a 0% APR credit card may still be smarter. The program launches today, and interested customers can apply on Apple’s website or in-store.
