In a move that confirms the tech industry’s shift toward subscription and service models, Apple has officially launched an entirely new program called Apple Upgrade in collaboration with the financing company Klarna in the United States. This program is not limited to the iPhone; it extends to include Mac, iPad, and Apple Watch devices, giving users the option to lease their favorite devices instead of purchasing them outright or using traditional installment plans.
Contract Duration and Monthly Pricing for All Devices
The Apple Upgrade program offers 12 or 24-month lease contracts for both the iPhone and Apple Watch, while contract durations for Mac and iPad devices range between 24 and 36 months. Monthly lease prices start at $17.99 for the iPhone, $11.99 for the Apple Watch, $24.99 for Mac devices, and $11.99 for iPads, with prices varying based on the model and specifications chosen.
Lessees can reduce their monthly installment value by trading in an old device when signing up for the first time. Additionally, using an Apple Card to pay installments grants consumers 3% Daily Cash back. Klarna handles the application process, which requires a simple credit check that does not affect the applicant’s credit score, and requires no security deposit to get started.
Why We Call It Leasing Rather Than Purchasing
Apple emphasizes that this contract is a consumer lease agreement rather than a purchase or a loan, as the user does not own the device until the final purchase fee is paid. Furthermore, insurance coverage is not part of the basic contract, but users can add AppleCare separately to avoid any additional fees in the event of device damage or loss.
End-of-Contract Options and the Concept of Consumer Leasing
At the end of the specified contract term, the user has three options: return the device and terminate the subscription, pay a one-time purchase fee to own the device permanently, or apply for a new contract to upgrade the device and return the old one. If no decision is made, the contract continues automatically on a monthly basis for up to six months before the purchase fee is calculated automatically.
Eligibility Requirements and Excluded Devices
The program is currently available to residents of the United States who meet the legal age requirement and possess a Social Security Number (SSN) or ITIN, in addition to an Apple account in good standing and a Klarna account. For iPhone lessees, the device must be activated with one of the major carriers (AT&T, T-Mobile, or Verizon); prepaid plans are not accepted, and it is worth noting that the device remains unlocked.
Not every Apple device is available under this program; Apple has excluded the iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPads with the A16 chip, and the Studio Display, as well as refurbished accessories.
Discontinuing Old Programs and the Comprehensive Shift
Concurrently with the launch of Apple Upgrade, Apple announced the discontinuation of the popular iPhone Upgrade Program and older iPhone installment options in the United States. Existing subscribers can transition to the new service, opt for Apple Card monthly installments, or purchase their next devices directly.
With this move, Apple makes it easier for users to obtain the latest devices in the ecosystem continuously with predictable monthly installments, cementing the tech leasing model as a new alternative to direct purchasing.
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