News in Short

• Apple has replaced the iPhone Upgrade Program with the new Apple Upgrade leasing plan.
• The service is available only in the US and is powered by Klarna.
• Users can lease iPhones, iPads, Macs and Apple Watches.
• AppleCare+ is no longer included with the monthly payment.
• Customers must return the device or pay the remaining amount to own it.

Apple has officially replaced its long-running iPhone Upgrade Program with a new leasing service called Apple Upgrade. Powered by Klarna, the programme allows eligible customers in the US to lease iPhones, iPads, Macs and Apple Watches for lower monthly payments.

However, the new plan works differently from Apple’s previous upgrade programme. If you’re considering leasing your next Apple device, here are the biggest changes you should know before signing up.

1. It is only available in the US

Apple Upgrade has launched exclusively in the United States. The company has not announced plans to expand the service to other markets, including India.

2. You get an unlocked iPhone

Apple ships leased iPhones unlocked. However, buyers must select AT&T, Verizon or T-Mobile during checkout. Since the device remains unlocked, users can later switch carriers or activate another eSIM.

3. You need a postpaid connection

The leasing programme only supports customers with postpaid mobile plans. Users with prepaid connections cannot enrol.

4. You do not automatically own the device

Unlike buying a phone through monthly instalments, leasing does not transfer ownership at the end of the term.

Users must either:

• Return the device and upgrade.
• Return the device and end the lease.
• Pay the remaining balance to keep the device permanently.

5. Missed payments won’t lock your iPhone

Apple has confirmed that missing a payment will not disable apps or restrict iPhone functionality.

Instead, Klarna simply adds the missed payment to the following month’s bill.

6. Three missed payments end the lease

Missing three consecutive payments has serious consequences.

Klarna terminates the lease immediately and demands the remaining balance. If users return the device, Klarna deducts its value from the outstanding amount. Failure to pay could also result in debt collection and affect the customer’s credit score.

7. AppleCare+ is no longer included

This is one of the biggest changes.

The previous iPhone Upgrade Program bundled AppleCare+ with the monthly payment. Under Apple Upgrade, customers must purchase AppleCare+ separately.

8. Damage could cost extra

Customers must return leased devices in good condition.

Without AppleCare+, users must pay repair costs for damaged devices before returning them.

9. Apple Card financing still exists

Apple has not discontinued Apple Card Monthly Installments.

Customers who finance an iPhone using the Apple Card continue to own the device outright after completing their payments.

10. Not every Apple product qualifies

Several products cannot be leased through Apple Upgrade.

These include the iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, A16 iPad, and Studio Display.

11. Education discounts do not apply

Students and educators cannot combine Apple Upgrade with Apple’s education pricing.

12. Refurbished devices are excluded

The leasing programme only covers new Apple devices. Refurbished products are not eligible.

13. You can end the lease early

Users can exit the programme before the lease expires. However, they must pay the remaining lease amount before returning the device.

14. Early buyout comes without penalties

Customers who decide to purchase the device before the lease ends can pay off the remaining balance without paying any extra fee.

15. Approval won’t hurt your credit score

Apple says the programme only requires a soft credit check, so applying does not affect a customer’s credit score.

16. You can trade in an old iPhone

Apple allows trade-ins when starting a lease.

Instead of deducting the trade-in value immediately, the company spreads the credit across monthly payments.

17. You cannot trade in during an upgrade

Customers cannot trade in their existing leased device while upgrading to a newer model.

18. Some credit cards are not accepted

Klarna does not accept payments from certain credit card issuers, including American Express, Chase and Capital One.

However, users can pay using supported cards, including the Apple Card.

19. There are no late fees

Apple says Klarna does not charge late fees for missed payments. However, customers should still avoid missing payments because repeated defaults can end the lease.

20. Is Apple Upgrade worth it?

Apple Upgrade lowers the upfront cost of owning premium Apple devices and gives users more flexibility when upgrading.

However, customers should remember that leasing is different from financing. Unless they pay the remaining balance, they never own the device. Buyers should also factor in the extra cost of AppleCare+, which no longer comes bundled with the monthly payment.

For users who upgrade frequently, the programme may still offer good value. Those who prefer owning their devices outright may find traditional financing a better option.