Apple Launches Upgrade Leasing Program with Klarna on July 28
Apple is set to introduce a new device‑leasing service called Apple Upgrade in the United States on July 28. The program, built with fintech partner Klarna, lets customers lease iPhone and Apple Watch models for up to 24 months and Mac and iPad models for up to 36 months, paying a monthly fee instead of buying outright. Users can pay off the balance early, upgrade to a newer device before the term ends, or return the hardware at lease expiry. The service replaces Apple’s long‑running iPhone Upgrade Program and does not bundle AppleCare coverage; a separate purchase is required for warranty protection.
Eligibility is limited to premium devices – entry‑level models such as the iPhone 16, Apple Watch SE, base‑model iPad and the MacBook Neo are excluded, as are bulk purchases for business or education. Enrollment will involve a soft credit check performed by Klarna, and additional fees may apply for certain early‑pay or upgrade actions.
A separate code leak in the iOS 27 beta suggests Apple could place leased devices into a “Restricted Mode” if payments are missed, locking most apps while keeping basic functions such as Phone, Settings and Wallet active. This potential enforcement mechanism adds a layer of control over financed hardware.