- Apple Upgrade replaces the iPhone Upgrade Program with a new Klarna-powered leasing option for eligible iPhones, iPads, Macs, and Apple Watches in the U.S.
- Leased iPhones are unlocked, but customers must have a supported postpaid carrier plan, and AppleCare+ is no longer included with the monthly lease.
- There are no late fees for missed payments, but missing three consecutive payments can terminate the lease and require the remaining balance to be paid.
Apple has officially amended its popular iPhone Upgrade Program with Apple Upgrade. The new leasing service is made available in partnership with Klarna, allowing eligible customers to purchase new Apple devices, including iPhones, iPads, Macs, and Watches. Until now, the company only offered this program for iPhones, but now, it has expanded its offering.
The new program also changes how ownership, device protection, upgrades, and financing work along with lowering monthly payments for some buyers. Here’s an in-depth detail of what Apple customers should know before signing up for the program.
Apple Upgrade is available only in the U.S.
As of now, Apple Upgrade is currently limited to customers in the United States. Unfortunately, Apple has not revealed whether the program will expand to additional global regions in the future or not.
Consequently, customers excluding the United States will have to depend on Apple’s existing purchase and financing options available based on their region.
Leased iPhones are unlocked but require carrier selection
One of the important factors of this program is that iPhones leased through Apple Upgrade are carrier-unlocked. I know some of you choose the locked carrier option. So, let me tell you that this program is suitable for consumers looking for an unlocked carrier.
When you click on “checkout” on Apple Upgrade, you will get an option to select one of Apple’s supported carriers; it includes AT&T, Verizon, and T-Mobile. Notably, the device is not permanently restricted to that network.
In simple words, buyers will be able to switch carriers anytime or add a second eSIM if needed. However, enrollment would require an active postpaid plan with one of the supported carriers. Unfortunately, prepaid plans are not eligible in this case.
Leasing means you don’t automatically own the device
Since the term itself says “leased,” let me bring to your attention that Apple Upgrade is not a traditional financing plan but a leasing program.
Customers make monthly lease payments throughout the agreement, but that doesn’t mean that they own the device when the lease ends. To keep it, enrolled customers must pay the remaining amount, or the iPhone shall be returned if they choose to upgrade or end the lease.
If you’re mistaking it for an EMI plan or Apple’s financing through Apple Card monthly installments, that’s a different case. In that case, customers own the device once all payments are completed.
No late fees, but missed payments have consequences
Apple clearly addressed concerns noted by references found in the iOS 27 beta that indicated leased devices could face software restrictions if payments are held or missed.
Interestingly, the company said that those restrictions do not apply to Apple Upgrade. Hence, missing a payment will not affect how the iPhone functions or limit its access to apps or services.
Instead, a missed payment will be rolled to the following month’s bill, and it won’t charge you any additional fees for being late or missing the bill.
Three missed payments can end the lease
Even though there are no late-payment fees, customers should be aware of repeatedly missing payments, since they will lead to consequences.
As a result, if a buyer misses three monthly payments continuously, Klarna will automatically terminate the lease and will require immediate payment of the remaining balance. By any chance, if the customer returns the device, Klarna will deduct its value from the owned amount and reduce the final payment.
Notably, if the balance remains unpaid or the device is not returned, Apple may send the account to collections, which can also affect the customer’s credit history.
AppleCare+ is no longer included
With great benefits, there is a drawback in this program as well. One of the biggest missing perks in the program is the absence of AppleCare+.
Customers who prefer to opt for coverage against accidental damage or hardware issues will be required to purchase it separately. For your information, AppleCare+ for iPhone costs between $9.99 and $13.99/month. On the other hand, AppleCare One costs $19.99/month and covers up to three Apple devices.
If the customer chooses not to purchase AppleCare+, they will be held responsible for repair costs if they return a damaged leased device.
Early buyouts are allowed without penalties
Apple Upgrade also allows customers to buy out their lease before the agreement ends, and that too without paying any early repayment penalties.
Buyers who wish to end the lease early can simply do it by paying the remaining amount and returning the device.
Trade-ins work differently under Apple Upgrade
Along with these benefits, customers can trade in an older iPhone when starting a new Apple Upgrade lease.
The trade-in value is amortized across the monthly lease payments rather than reducing the purchase price upfront. However, Apple does not allow trade-ins when returning a leased device to upgrade to a newer model through the program.
Apple Card financing remains available
Despite the iPhone Upgrade Program no longer being available, the company is still offering Apple Card monthly installments for eligible customers in the Apple Upgrade Program.
Under this program, the financing option offers 0% interest on eligible iPhone purchases, and buyers own their devices after completing the payment plan rather than leasing them.
Existing users of the iPhone Upgrade Program can still remain on their existing plans until their next upgrades or when they’ll need to choose another purchasing option.
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Some Apple products aren’t eligible
Apple has not made every device available for the Apple Upgrade. According to the company, the program excludes the iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, A16 iPad, and Studio Display.
Moreover, the leasing option won’t be combined with education pricing and is unavailable for refurbished Apple products.
Soft credit check and payment restrictions
When applying for an Apple Upgrade, it would require a soft credit check, so submitting an application won’t affect a customer’s credit score.
However, Klarna does not accept payments from some credit card providers. It includes cards from American Express, Chase, and Capital One. Meanwhile, other payment methods such as Apple Card remain supported during checkout.
