Apple is preparing to introduce a new device leasing program called Apple Upgrade, according to reports from Bloomberg’s Mark Gurman. The initiative will function similarly to automobile leasing arrangements, allowing customers to upgrade to newer devices ahead of schedule, retain their current device upon lease completion, or return it. The program will be backed by financial services company Klarna and will require prospective users to undergo a soft credit check during the enrollment process.
The Apple Upgrade program is scheduled to debut on July 28th and will consolidate the company’s current iPhone Upgrade Program and standard financing options into a unified offering. The new program will be applicable to most newly released iPhone, Mac, iPad, and Apple Watch models. Lease terms will vary by product category, with iPhones and Apple Watches available under 24-month agreements, while iPads and Macs will be offered on 36-month terms.
Certain budget-oriented models will be excluded from the program’s eligibility criteria, including the standard iPad, iPhone 16, Apple Watch SE, and the MacBook Neo. A notable distinction from the existing iPhone Upgrade Program is that Apple Upgrade will not incorporate AppleCare coverage as a standard component. Additionally, AppleCare pricing is undergoing increases separately.
The program’s introduction follows Apple’s recent comprehensive price adjustments across much of its product lineup. Although iPhones were not affected by those increases, analysts anticipate that the upcoming iPhone 18 Pro series, expected to launch later this year, may establish new pricing benchmarks for the company’s premium smartphone offerings.