Apple debuts Klarna-powered device leasing

Apple has introduced Apple Upgrade, a U.S. device-leasing program that lets consumers obtain select Apple products through monthly payments rather than an upfront purchase. Launched on July 28, 2026, the program covers certain models of the iPhone, iPad, Mac and Apple Watch. It is available both through Apple’s online store and at Apple retail locations in the United States. The offering is structured as a lease, giving users access to devices over a defined term for a fixed monthly price.

The leases are provided and handled by digital payments company Klarna. This partnership places Klarna in charge of administering the lease agreements associated with Apple Upgrade. The arrangement extends Klarna’s role from buy-now-pay-later services into longer-term device leasing within Apple’s sales channels. All leasing interactions tied to the program are routed through this collaboration.

Apple Upgrade encompasses core devices across the company’s ecosystem: iPhones, Apple Watches, Macs and iPads. For iPhones, monthly payments start at $17.99, while Apple Watch leases start at $11.99 per month. Mac computers are available with starting monthly payments of $24.99, and iPads start at $11.99 per month. These prices represent advertised entry points and will vary by specific model and configuration.

Lease terms differ by product category. iPhone and Apple Watch customers can choose 12- or 24-month leases, aligning with one- or two-year access periods. For Macs and iPads, terms of 24 or 36 months are available, offering two- or three-year leasing options. This structure allows customers to spread costs over time while matching the lease length to the type of device they are acquiring.

At the end of the lease term, Apple Upgrade participants have several options. Customers can return the device and exit the program, or they can initiate a new lease to upgrade to a newer model. Another option is to purchase the leased device outright with a one-time payment at the conclusion of the lease. These choices are built into the program to provide flexibility as devices age or user needs change.

Trade-ins are integrated into Apple Upgrade as a way to reduce monthly payments. Customers who provide an eligible existing device can lower the cost of their new lease, making the monthly payment more affordable. This trade-in element links the leasing program to the broader device refresh cycle, encouraging users to transition older hardware into credit toward newer products while remaining within Apple’s hardware ecosystem.

Apple Upgrade is limited to the U.S. market at launch and can be accessed through Apple’s online storefront and its network of retail locations. Customers can enroll when selecting a device, choosing the lease term and viewing the corresponding starting monthly payment. With Klarna managing the lease agreements, the program serves as an additional financing path for consumers who prefer predictable monthly costs over an upfront purchase.