Apple unveils Klarna-backed Apple Upgrade

Apple is introducing a new device-leasing program called Apple Upgrade in the United States, scheduled to launch on July 28, 2026. The program will be supported by Klarna as its financial backer and will be available both through Apple’s online channels and in physical Apple retail stores. Apple Upgrade is intended to cover most models across the iPhone, iPad, Mac and Apple Watch product lines, creating a unified structure for consumers to access Apple hardware through recurring payments.

At launch, Apple Upgrade will be limited to individual consumer purchases, with business and education transactions specifically excluded. The program’s rollout is confined initially to the U.S. market, with no additional territories confirmed in the available information. The new offering is positioned as Apple’s primary installment and leasing option for iPhones, replacing several existing payment arrangements.

While Apple Upgrade will span a broad range of devices, Apple will exclude certain lower-priced products from eligibility. Named exclusions include the Apple Watch SE, the entry-level iPad, the iPhone 16 and the MacBook Neo. These devices will not be available through Apple Upgrade, even though other iPhone, iPad, Mac and Apple Watch models are expected to be covered.

The decision to omit these specific products creates a distinction within Apple’s lineup between models that can be leased under the new structure and those that must be acquired through other purchasing options. The information provided does not indicate any changes to how the excluded devices will be sold outside the program.

Apple Upgrade will use different lease durations depending on the product category. iPhones and Apple Watch models will generally be offered on roughly 24-month terms, aligning smartphones and wearables under a two-year leasing structure. Macs and iPads will instead follow longer arrangements of about 36 months, reflecting a three-year horizon for these larger devices.

Customers will have several options over the life of the lease. They will be able to pay off their devices early, move to a newer model before the end of the agreed term, or decide at lease end whether to keep or return the product. Some of these actions may incur additional fees, and participation will require a soft credit check for approval. The available details do not specify exact fee levels or any limits on early upgrades.

With the introduction of Apple Upgrade, Apple plans to stop accepting new enrollments in its current iPhone-focused payment programs. This includes both the iPhone Upgrade Program and standard iPhone financing options that have been offered alongside device purchases. The change means new customers seeking installment-style arrangements for iPhones will be directed to Apple Upgrade once it is live.

A notable difference from the existing iPhone Upgrade Program is that Apple Upgrade will not bundle AppleCare as part of the standard leasing agreement. Under the new setup, device protection and support services will need to be handled separately if customers wish to add them. This marks a structural shift in how Apple pairs financing with service coverage, consolidating hardware leasing while decoupling it from AppleCare by default.