Apple lets customers lease products with Klarna: is it cheaper?
Apple has launched Apple Upgrade, a new Klarna-backed leasing program for iPhones, iPads, Macs and Apple Watches, while ending new enrollments in the company’s long-running iPhone Upgrade Program.
The change gives customers more ways to upgrade their devices, but it also raises a key question for millions of Apple users: will the new lease actually save them money?
The answer depends on what customers value. While Apple’s new lease carries lower advertised monthly payments, the company has also changed how some benefits are packaged.
What Is Apple Upgrade?
Apple Upgrade is a leasing program offered through Klarna that allows customers to pay a monthly fee for an iPhone, iPad, Mac or Apple Watch. Customers can choose between different lease terms depending on the product, and at the end of the lease they can upgrade to a newer device, buy the device outright or return it and leave the program.
The program is available online, through the Apple Store app and in Apple retail stores across the United States. Apple says applicants will undergo a soft credit check that does not affect their credit score.
The launch also marks the end of new sign-ups for the iPhone Upgrade Program, which allowed customers to finance an iPhone over 24 months and become eligible for an upgrade after making 12 payments.
The rollout also comes during a period of transition for Apple. In April, the company announced that longtime CEO Tim Cook would become executive chairman, with hardware chief John Ternus set to take over as CEO on September 1, 2026. Apple Upgrade is among the first major consumer-facing initiatives unveiled during that leadership handover.
Apple Upgrade vs. iPhone Upgrade Program
For customers who upgraded their iPhone every year, the most important comparison is the monthly cost.
Apple’s published pricing shows that the new Apple Upgrade lease costs about $11 less per month across the iPhone 17 Pro Max lineup than the old iPhone Upgrade Program.
Why the New Program Looks Cheaper
A major reason for the lower monthly price is that the old iPhone Upgrade Program included AppleCare+ with Theft and Loss as part of the monthly payment. Apple says existing iPhone Upgrade Program users will continue to receive that coverage while their financing agreement remains active.
Under Apple Upgrade, AppleCare+ is no longer included by default and must be purchased separately. Apple-focused publications report that AppleCare+ with Theft and Loss for current Pro-level iPhones costs about $13.99 per month, or $139.99 per year.
That means the roughly $134 annual saving shown in Apple’s lease pricing is almost entirely offset if customers choose to add the same level of coverage separately.
What Happens at the End of the Lease?
Another significant difference is ownership.
With the old iPhone Upgrade Program, customers financed the device through a 24-month loan and owned the phone after making all payments. Apple says current members can continue making payments until the device becomes theirs.
With Apple Upgrade, customers lease the device through Klarna and then decide whether to buy it, return it or move to another lease when the term ends.
Apple says customers can also lower payments by trading in an existing device when enrolling and can earn 3 percent Daily Cash when paying with Apple Card.
What Apple Says
Apple said the new program is designed to offer customers more flexibility and expand upgrade-style payments beyond the iPhone to include Macs, iPads and Apple Watches. The company says monthly lease pricing starts at $17.99 for iPhone, $11.99 for Apple Watch, $24.99 for Mac and $11.99 for iPad.
Newsweek reached out to Apple via email for comment and is awaiting a reply.
The Bottom Line
For customers who upgraded their iPhone every year, Apple’s new Klarna-backed lease appears about $134 cheaper annually based on the advertised monthly payment.
But the savings come with an important caveat: the old iPhone Upgrade Program included AppleCare+ with Theft and Loss, while Apple Upgrade does not. Once that coverage is added back in, the cost difference largely disappears.
As a result, the biggest change may not be price at all. Instead, Apple is shifting customers from a financing program that bundled protection and led to ownership into a more traditional leasing model centered on flexibility and recurring upgrades.
Contact Newsweek editors on this story: Ben Kelly and James Debens
