Apple unveils Klarna-powered ‘Apple Upgrade’ plan for iPhone, Mac and iPad in US

Apple has launched a new “Apple Upgrade” plan on Tuesday after replacing the previous iPhone Upgrade Program and iPhone Payments in the US.

The recently announced new device leasing program is provided through a partnership with Klarna, a financial services company. Speaking about the eligibility and process of the plan, it is available online, in the Apple Store app, and at retail locations. The applicants undergo a soft credit inquiry through Klarna that does not impact their credit score.

The plan will be applied to new iPhones, Macs, Apple watches and iPads but some exceptions also exist, including iPhone 16/16 Plus, Apple Watch SE, MacBook Neo, base model iPad (A16), and Studio Display.

Unlike the old iPhone Upgrade Program, AppleCare+ is not included in the monthly lease. Though it is optional and must be purchased separately. If the customers make lease payments by using an Apple Card, they can earn 3 percent daily cash back.

Leasing terms & starting prices

The lease duration and monthly costs vary across the device ranges. For instance, for an iPhone, the lease terms are around 12 or 14 months starting from $17.99.

• Apple watch: 12 or 14 months starting from $11.99
• Mac: 24 or 36 months at $24.99
• iPad: 24 or 36 months at $11.99

End-of-lease options

Customers will have three choices when their lease term expires. The first option is an upgrade in which they return the device and start a new lease for a newer model.

The second choice is purchased based on paying the remaining balance to keep the device. And the third one is return in which one can return the device to Apple and exit the plan.

If you do not take action at the end of the term, the lease automatically converts to a month-to-month agreement for up to six months. If the device is not returned or purchased after that, a final purchase fee will be charged.