Apple Launches Klarna-Backed 'Apple Upgrade' Leasing Program Starting at $17.99/Month

Apple has replaced its iPhone Upgrade Program with a new Klarna-backed leasing service covering iPhones, iPads, Macs, and Apple Watches.

Apple has quietly retired two existing payment programs and launched a single replacement: Apple Upgrade, a U.S. leasing service backed by the buy-now-pay-later company Klarna. The new program consolidates the old iPhone Upgrade Program and iPhone Payments into one offering and expands leasing to a broader range of Apple hardware. Monthly starting prices are $17.99 for iPhone, $11.99 for Apple Watch, $11.99 for iPad, and $24.99 for Mac. MacRumors notes the base prices are lower than those of the outgoing iPhone Upgrade Program, though the exact terms and trade-in conditions have not been fully detailed in available reporting. The program is currently limited to the United States. Apple confirmed the change on its own website, directing users to the new Apple Upgrade storefront. Klarna, which operates a widely used installment-payment platform, is the financial partner underpinning the leases.

Why it matters

The shift affects existing iPhone Upgrade Program subscribers and anyone who uses Apple's in-house financing to spread device costs over time. Partnering with Klarna marks a significant change in how Apple structures consumer credit for hardware purchases.

What's next

It is not yet clear how or when existing iPhone Upgrade Program subscribers will be transitioned to the new Apple Upgrade program.

Key facts

• Apple Upgrade replaces both the iPhone Upgrade Program and iPhone Payments
• Klarna is the financial partner backing the new leasing program
• iPhone leases start at $17.99/month; Apple Watch and iPad at $11.99/month; Mac at $24.99/month
• The program covers four product categories: iPhone, iPad, Mac, and Apple Watch
• Apple Upgrade is currently available only in the United States
• Base monthly prices are lower than those of the outgoing iPhone Upgrade Program

Bias & framing notes

CNET's headline framed the story around consumer relief from 'sticker shock,' emphasizing the emotional appeal rather than the structural change. MacRumors provided the most concrete pricing details and named Klarna explicitly. Apple's own source confirmed the retirement of the old program but offered no additional detail beyond a URL redirect. No source surfaced any criticism or consumer concerns about the Klarna partnership.

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