Apple has replaced its iPhone Upgrade Program with Apple Upgrade, a lease-style program run in partnership with Klarna. Available only in the United States, the plan lets customers get iPhone, iPad, Mac and Apple Watch devices at seemingly lower monthly rates, but it comes with practical and financial conditions you should understand before committing.
Apple Upgrade: the essentials
– Apple Upgrade operates like a lease managed by Klarna. Devices are sold unlocked, and you must select a carrier (AT&T, Verizon or T‑Mobile) when you place the order.
– The program advertises reduced monthly payments, but ownership is not automatic: you only own the device at the end of the term if you pay the remaining balance.
Eligibility and geographic limits
– Apple Upgrade is limited to U.S. residents. There’s no public information about international expansion.
– You must have a postpaid plan with a supported carrier; prepaid plans are not eligible.
Ownership, lease-end and early termination
– To keep a device at lease end, you must pay the outstanding balance (the remaining amount between the original price and the payments you’ve already made).
– If you want a new device at the end of the term, you must return the leased unit.
– You can end the lease early by paying the remaining balance—there are no penalties for early payoff—then returning the device.
Missed payments and consequences
– A missed payment is simply rolled into the next month without a late fee.
– If you miss three consecutive payments, Klarna will automatically terminate the contract and the full remaining balance becomes due.
– If you return the device, its trade‑in value is credited against the amount owed. Failure to pay or return the device can result in the account being sent to collections. While there are no immediate fees, missed payments can affect your credit.
Insurance and damage costs
– AppleCare+ is not included with Apple Upgrade. You must buy AppleCare+ separately (typically $9.99–$13.99/month for iPhone), or choose AppleCare One at $19.99/month to cover up to three devices.
– If a device is returned damaged, Klarna will bill you for repairs; with AppleCare+ you would only be responsible for the applicable deductible.
Credit checks and payment methods
– Starting an Apple Upgrade lease does not require a hard credit inquiry, so initial approval does not produce a hard pull on your credit score.
– Klarna restricts certain payment cards (notably some AMEX, Chase and Capital One cards), though the Apple Card can be used to pay Klarna installments.
Eligible devices and exclusions
– Not all Apple products are eligible. Exclusions include, among others: iPhone 16 and iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad A16 and the Studio Display.
– Refurbished devices are not available through Apple Upgrade, and education pricing does not apply.
Trade‑ins and trade‑in value
– When you sign up you can submit an iPhone trade‑in: the trade‑in value is applied across your monthly payments rather than given as a one‑time credit.
– You cannot apply a trade‑in credit when you return a device to upgrade to a new model.
Alternatives to consider
– You can still buy an iPhone with Apple Card Monthly Installments, which offers interest‑free financing and results in immediate ownership.
– Current iPhone Upgrade Program members are not required to migrate right away; they will need to choose an option when their next renewal comes up.
Bottom line
Apple Upgrade offers a more flexible, lower‑appearing monthly payment option through Klarna, but it imposes constraints—U.S.‑only availability, a required postpaid carrier plan, separate AppleCare+ purchase, and specific missed‑payment rules—that could affect whether it’s the right choice for you. Before signing, compare Apple Upgrade with other financing options and review the terms that matter most to your situation.
