Apple Now Lets You Lease an iPhone: How Apple Upgrade Really Works
Updated: August 28, 2026
Can you really lease an iPhone directly from Apple? The answer is yes. Apple launched Apple Upgrade in the United States on July 28, 2026, allowing eligible customers to lease selected iPhones, Macs, iPads, and Apple Watches through monthly payments.
However, Apple Upgrade is not a standard installment plan or hardware subscription. Apple officially defines it as a consumer lease—not a purchase or loan. Klarna provides the lease, while customers apply through the Apple Store.
What Is Apple Upgrade?
Apple Upgrade is available through Apple.com, the Apple Store app, and participating US Apple Store locations.
| Product | Lease term | Starting monthly price |
|---|---|---|
| iPhone | 12 or 24 months | $17.99 |
| Apple Watch | 12 or 24 months | $11.99 |
| iPad | 24 or 36 months | $11.99 |
| Mac | 24 or 36 months | $24.99 |
Customers may also trade in an eligible device when first enrolling. The trade-in credit reduces monthly payments during the initial lease term.
According to the official Apple announcement, an iPhone 17 Pro 256GB priced at $1,099 typically costs $31.99 per month for 24 months or $45.99 per month for 12 months, excluding taxes and trade-in credits.
What Happens When the Lease Ends?
Customers have three options:
- Return the device and upgrade to a newer model.
- Return the device and leave Apple Upgrade.
- Pay the Purchase Option Fee and own the device.
A leased device does not automatically become yours after the final scheduled payment. The buyout fee generally equals the original retail price minus lease payments and remaining trade-in credits, plus applicable tax.
If no decision is made, Klarna may extend the lease month-to-month for up to six months. After that period, the remaining purchase fee can be charged automatically. These conditions are also confirmed by Klarna’s Apple Upgrade guide.
Who Can Apply?
Applicants must be US residents, excluding US territories, and must meet the legal age requirement in their state. A Social Security number, eligible US credit or debit card, billing address, phone number, and email address are required.
Klarna performs a soft credit inquiry, which does not affect the applicant’s credit score. Approval is not guaranteed.
An iPhone lease requires activation with AT&T, T-Mobile, or Verizon. Prepaid plans are excluded, although leased iPhones are sold unlocked and may later be moved to another carrier under that carrier’s conditions.
Important Costs to Consider
AppleCare is not included. Customers who return a damaged device without coverage may be charged a damage fee. Ending the agreement early can also trigger a fee equal to the remaining lease payments.
Apple Upgrade is therefore best suited to customers who replace their devices regularly and do not need to keep them. Buyers who normally use an iPhone for several years may find Apple Card Monthly Installments or an outright purchase more economical.
Apple Upgrade vs. Apple Card Installments
Apple Upgrade is a lease with no automatic ownership. Apple Card Monthly Installments is a 0% APR purchase plan in which the customer buys the product and pays the balance over time.
Apple has discontinued new enrollment in its former iPhone Upgrade Program and iPhone Payments program following the launch of Apple Upgrade. The change was independently confirmed by Reuters.
Frequently Asked Questions
Is Apple Upgrade a real lease?
Yes. Apple describes it as a consumer lease provided by Klarna, not a purchase or loan.
Can I keep the device?
Yes, but you must pay the Purchase Option Fee through Klarna to obtain ownership.
Is AppleCare included?
No. AppleCare must be purchased separately.
Is Apple Upgrade available outside the US?
No. As of August 2026, Apple Upgrade is available only to eligible customers in the United States.
Is leasing cheaper than buying?
Monthly payments are lower, but you do not own the device unless you pay the final buyout amount. The better option depends on how frequently you upgrade.
