After years of stalled reports and speculation regarding Apple’s intention to launch a monthly subscription service for hardware and devices, it seems the idea is back on the table, but in a new form. Recent reports shared by reliable journalist Mark Gurman indicate that Apple is preparing to unveil a new leasing program called “Apple Upgrade” at the end of this July, allowing users to obtain the company’s latest devices for a low monthly payment.
A new alternative to the old iPhone Upgrade Program
The new service, expected to launch on July 28, will support most iPhone, Mac, iPad, and Apple Watch models. This initiative serves as a direct alternative to the well-known iPhone Upgrade Program, which Apple launched in 2016 to help users replace their devices annually.
Unlike the old program, which was backed by Citizens One bank and offered directly by Apple, the new Apple Upgrade program comes in partnership with the renowned financial services company Klarna. This collaboration reflects Apple’s recent strategy of stepping back from providing financial services directly—as seen when it canceled the Apple Pay Later service—and relying instead on companies specialized in “Buy Now, Pay Later” solutions.
How does the leasing system work and what are the contract durations?
The Apple Upgrade program operates in a manner very similar to car leasing contracts; the user pays monthly installments that allow them to use the device throughout the contract period. The standard contract duration is 24 months for iPhones and Apple Watches, while it extends to 36 months for Macs and iPads. Approval also requires a soft credit check.
At the end of the lease period, the user has the option to return the device to Apple, upgrade to a newer model, or pay the remaining value to keep it permanently. Users may also pay off the device or upgrade early before the term ends, although this may incur additional fees in some cases.
Program terms and excluded devices
One of the notable points of the new program is that it will not include AppleCare warranty coverage within the monthly installment. Additionally, Apple has decided to exclude budget-friendly devices and those aimed at educational and business sectors; devices such as the Apple Watch SE, the base iPad (with the A16 chip), the iPhone 16, and the MacBook Neo will not be eligible for this program.
Apple’s primary goal with this move is to offer an option that ensures lower monthly installments compared to traditional financing options. At the same time, sources indicate that Apple may move to cancel regular direct installment plans, leaving the only alternative for those wishing to purchase as relying on credit cards, third-party financing companies, or using Apple Card, which allows for 0% interest installments but holds the full value of the device against the available balance.
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