Apple Officially Unveils US Device Leasing Service

Apple formally announced Apple Upgrade, a direct-to-consumer hardware leasing program backed by Klarna Group. Through the program, the company would offer US customers monthly payment options across its iPhone, Apple Watch, Mac, and iPad product lines.

The launch follows recent reports detailing Apple’s shift toward a consumer leasing framework to drive recurring device revenue. However, the official terms differ in several key areas from initial industry expectations. Apple confirmed the program offers dual tenure options per category. iPhone and Apple Watch plans offer 12- and 24-month lease terms starting at $17.99 and $11.99 per month, respectively. Mac and iPad plans feature 24- and 36-month options, with monthly pricing starting at $24.99 for Macs and $11.99 for iPads.

Customers can further reduce monthly lease obligations by applying trade-ins through Apple Trade In at setup. Those paying via Apple Card earn 3% Daily Cash back on monthly instalment charges. Enrolment is available online, through the Apple Store app, and in physical US retail locations. Unlike conventional financing checks which can impact consumer credit records, Klarna’s application process utilises a soft credit inquiry, leaving applicant credit scores unaffected.

At the end of the designated term, subscribers can choose to upgrade to a next-generation device, pay off the remaining balance to retain ownership, or return the hardware and exit the program. Contrary to speculation, hardware protection would be excluded; Apple verified subscribers can attach AppleCare protection plans directly to their lease, simplifying return and upgrade conditions at the end of the contract term.

Additionally, Apple confirmed full device lineups are included in the leasing initiative, encompassing the full iPhone 17 family, smartwatch choices featuring both the Apple Watch Series 11 and Apple Watch Ultra 3, the MacBook Air with M5, and iPad mini. Concurrent with the rollout of Apple Upgrade, Apple is sunsetting new enrolments for its legacy iPhone Upgrade Program and standard iPhone Payments options in the US market.