Apple Upgrade Program with Klarna: New Lease Options for iPhone, Mac

Apple and Klarna Launch Flexible Device Leasing Program

Apple has announced a new Apple Upgrade program in partnership with the buy now, pay later service Klarna. Eligible customers in the United States can now lease iPhones, Apple Watches, Macs, and iPads through monthly installments. The program is available on the Apple Store online, in the Apple Store app, and at physical Apple Store locations nationwide, making it easier for consumers to access the latest Apple hardware without a large upfront cost.

Lease Pricing by Device

Monthly payments vary by device, offering competitive entry points for each product category:

• iPhone: Starting at $17.99 per month
• Apple Watch: Starting at $11.99 per month
• Mac: Starting at $24.99 per month
• iPad: Starting at $11.99 per month

Lease terms differ by device. iPhone and Apple Watch customers can choose one- or two-year options, while Mac and iPad customers have two- or three-year lease terms.

End-of-Lease Options

At the end of the lease, Apple offers three flexible choices:

• Upgrade to the latest generation of the device
• Purchase the current device outright with a one-time payment
• Return the device and exit the program with no further obligation

This structure gives consumers control over their long-term device ownership and upgrade path.

Strategic Response to Supply Chain and Price Hikes

The Apple Upgrade program arrives amid industry-wide memory chip shortages—dubbed “RAMageddon”—which have forced Apple to raise prices on Mac and iPad models. The new leasing option helps mitigate sticker shock by spreading costs over manageable monthly payments. iPhones, for now, have not seen similar price increases, but the program positions Apple to maintain affordability across its ecosystem.

Manage Your Lease with Klarna

Customers can manage their entire lease directly through the Klarna app, where they can view billing schedules, track remaining payments, and handle account changes. This digital-first approach adds convenience and transparency to the leasing experience.

Discontinuation of Older Financing Programs

With the launch of Apple Upgrade, Apple is discontinuing its existing in-house financing and installment programs in the U.S., including the iPhone Upgrade Program and iPhone Payments. The new program consolidates and modernizes device financing under one partnership with Klarna.

Extra Savings and Benefits

Apple encourages enrollment by offering additional value:

• Trade-in discounts: Lower monthly payments by trading in an eligible device through Apple Trade In.
• Daily Cash rewards: Earn 3% Daily Cash back when lease payments are made with an Apple Card.

These incentives make the program even more attractive for budget-conscious buyers and loyal Apple customers.

Industry Context and Availability

The program was first reported by Bloomberg’s Mark Gurman, confirming Apple’s move toward a lease-to-own model. Now live across all U.S. Apple Store channels, the Apple Upgrade program is expected to boost hardware adoption amid rising device prices. Topics: Apple, Hardware, Klarna.