Apple Upgrade Leasing Reportedly Launches July 28
Apple reportedly plans to launch a Klarna-backed device leasing program in the United States on July 28, covering most iPhone, Mac, iPad, and Apple Watch models.
Apple Upgrade leasing is reportedly scheduled to launch in the United States on July 28, offering monthly leases on most iPhone, Mac, iPad, and Apple Watch models. Bloomberg reported the plan, citing people familiar with the matter, and Reuters carried the details. Apple and financing partner Klarna had not publicly confirmed the program when the report was published.
If launched as described, Apple Upgrade would replace several existing Apple payment options with a broader leasing model that spans the company’s major hardware lines.
What the Apple Upgrade report says
The reported service would be available through Apple’s U.S. retail stores and online shop. Klarna would provide the financial backing, allowing Apple to offer leases without carrying the agreements entirely on its own balance sheet.
According to the report, iPhone and Apple Watch leases would run for 24 months, while Mac and iPad agreements would use 36-month terms. A soft credit check would be required.
Customers would reportedly have several options during or at the end of a lease:
- Return the device when the lease ends.
- Pay the remaining balance to keep it.
- Continue making payments where the agreement allows.
- Upgrade to a newer eligible model before the term ends, potentially with additional fees.
Which devices would be eligible?
The program is expected to support most current iPhone, Mac, iPad, and Apple Watch models, but not every product. The report says the iPhone 16, entry-level iPad, Apple Watch SE, and MacBook Neo would be excluded at launch.
Business and education purchases would also be excluded. AppleCare would not be bundled automatically, unlike Apple’s current iPhone Upgrade Program, so customers who want coverage would need to add it separately.
What could happen to Apple’s current financing plans?
Apple reportedly plans to stop accepting new enrollments in the existing iPhone Upgrade Program and its standard financing option as Apple Upgrade launches. Existing agreements would still need to be handled according to their current terms, but the report describes the new service as Apple’s primary consumer payment program going forward.
The shift would let Apple advertise lower monthly payments at a time when higher component costs have pushed up prices across several product lines. Lower monthly pricing can make expensive hardware look more accessible, although the total cost depends on the lease, fees, upgrade timing, and whether the customer ultimately keeps the device.
Leasing is not the same as ownership
A lease reduces the upfront payment, but customers do not automatically own the hardware. Anyone considering the reported program should compare the full amount paid over the term with Apple’s purchase and trade-in options.
Other details will also matter, including early-upgrade charges, damage requirements, device return standards, regional availability, and the final purchase price. Those terms were not fully available in the initial report.
Why this matters for Apple
A multi-product leasing service could give Apple more predictable upgrade cycles and recurring payments while keeping customers inside its retail and services ecosystem. It could also help the company move inventory when higher retail prices make one-time purchases harder for some buyers.
For customers, the appeal is convenience and lower monthly payments. The tradeoff is that a lower payment does not necessarily mean a lower total cost, and ownership may require an additional payoff.
FAQ
Has Apple officially announced Apple Upgrade?
No. The July 28 launch and program details come from a Bloomberg report carried by Reuters. Apple and Klarna had not responded publicly when that report was published.
Would AppleCare be included?
The report says AppleCare would not be included automatically and would need to be purchased separately.
Can customers keep a leased device?
The reported terms would allow customers to pay off the remaining balance to keep a device, but the final contract details should be checked if Apple formally launches the program.
Source: Reuters
