Apple Retires the iPhone Upgrade Program for Klarna-Backed "Apple Upgrade" Leases

Apple just reshuffled how you pay for its hardware. As of July 28, 2026, the long-running iPhone Upgrade Program is dead — replaced by Apple Upgrade, a new U.S. leasing program built on a partnership with fintech lender Klarna. Here's what changed and what it means if you buy Apple gear.

The Big Picture

Apple Upgrade is a lease, not a loan. You pay a monthly fee to use an iPhone, iPad, Mac, or Apple Watch, and at the end of the term you decide what happens to it. Klarna handles the actual financing (Apple says Klarna charges no fee for the program), while Apple manages the device side — trade-ins, returns, and upgrades.

Base prices are low: - iPhone — from $17.99/mo - Apple Watch — from $11.99/mo - Mac — from $24.99/mo - iPad — from $11.99/mo

AppleCare+ is optional (AppleCare One also available).

Lease Terms

Trade-ins lower the monthly cost when applied on a recurring basis.

Three End-of-Lease Options

1. Return it and walk away. 2. Pay the difference and keep it — the payoff is retail price minus what you've paid minus remaining trade-in credits. Because Klarna adds no fee, a $1,099 iPhone can be bought out for $1,099 plus tax. 3. Return and upgrade to a new device on a fresh lease.

Apple ships a prepaid, pre-labeled box for returns and upgrades.

The Catches

- iPhones must be leased with a carrier plan (AT&T, Verizon, or T-Mobile). Prepaid and MVNOs like Mint Mobile or Visible aren't eligible. The phones are unlocked, so you can switch carriers later. - You don't own the device unless you pay the buyout at the end. Skip it and you must return the hardware. - Early termination isn't free — ending a lease early costs the remaining balance (e.g., three months left = three months' payment). Paying off early, however, has no fee. - Month-to-month fallback: if you do nothing at term end, the lease rolls monthly for up to six months, after which you're charged the buyout. Monthly trade-in credits stop when the original lease ends, so payments can rise. - Damage/theft: Klarna assesses condition at return. With AppleCare+, you pay the service fee; without it, you eat the full assessed damage cost. - Missed payments: rolled into next month, no late fee — but three consecutive misses terminates the lease and triggers collection.

Who's Left Out

Apple Upgrade can't be used for the iPhone 16/16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16), or Studio Display. No EDU discounts, no refurbished devices, and no Apple Employee/Business/Government/Veteran/Military purchase plans. You must be 18+, a U.S. resident (territories excluded), with a valid SSN/ITIN, an Apple Account in good standing, and a Klarna account.

What Happens to Current Customers

The iPhone Upgrade Program is closed to new sign-ups. Existing participants keep paying until their current device is paid off, then must switch to Apple Upgrade or another option at their next purchase. Apple Card users can still use Monthly Installments — or pick Apple Upgrade and earn 3% Daily Cash on lease payments made with the card.

Bottom Line

For most people this is a rebrand with a lower entry price and broader device coverage (Macs and iPads now included), at the cost of a Klarna account and, for iPhones, a carrier plan. If you want to own your device eventually, the buyout math is straightforward and fee-free. If you'd rather always have the latest hardware, the upgrade path is smoother than ever — just watch the early-termination and damage clauses.

Source: [MacRumors — Apple Retires iPhone Upgrade Program for Klarna-Backed Leases](https://www.macrumors.com/2026/07/28/apple-upgrade-program-klarna/)