Lease Now, Pay Less? Unpacking the New 'Apple Upgrade' Program

Apple hardware just got a lot more expensive, but the company is hoping a new financing strategy will soften the blow. On the heels of significant price hikes across its Mac and iPad lineups in late June 2026, Apple has officially launched Apple Upgrade, a comprehensive new leasing program that expands far beyond the iPhone.

Replacing the long-standing iPhone Upgrade Program, this new subscription-style model lets customers lease iPhones, iPads, Macs, and Apple Watches for a low monthly fee. But is it a good deal, or just a clever way to keep you locked into the Apple ecosystem forever? Let’s break it down.

How Apple Upgrade Works

Partnering with payment provider Klarna, Apple Upgrade operates similarly to leasing a car. Instead of buying a device outright or financing to own it, you pay a monthly fee to use the device for a set term.

Here are the contract lengths based on the hardware:

• iPhone & Apple Watch: 12 or 24-month lease options.

• Mac & iPad: 24 or 36-month lease options (since people upgrade these less frequently).

What happens at the end of the lease?

When your term is up, you have three choices:

1. Upgrade: Return your device in good condition, pick a newer model, and start a new lease.

2. Walk Away: Return the device and end your subscription entirely.

3. Buy It Out: Keep the device by paying off the remaining balance (the difference between what you've paid and the retail price).

The Pricing Breakdown

The most appealing aspect of the program is the low barrier to entry. If you factor in an eligible trade-in, your monthly payments can drop even further.

Here is where the starting prices land for standard configurations (lowest storage):

Device Category	Starting Price	Example Model
iPhone	$17.99 / month	iPhone 17e (24-month contract)
Apple Watch	$11.99 / month	Series 11 (24-month contract)
iPad	$11.99 / month	iPad mini (36-month contract)
Mac	$24.99 / month	MacBook Air (36-month contract)

Note: The highest-end options will cost you significantly more. A fully loaded 2TB iPhone 17 Pro Max on a 12-month lease will run you $83.35 per month.

See the Numbers for Yourself

Want to know if leasing makes financial sense for your next upgrade? Use this interactive calculator to compare the total cost of leasing versus traditional financing over a 24-month period.

Key takeaway: Leasing gives you the lowest possible monthly payment, but you walk away with zero equity in the hardware unless you choose to buy it out at the end.

The Fine Print: What You Need to Know

Before you sign up, there are a few important caveats to keep in mind:

• No AppleCare+ Included: Unlike the old iPhone Upgrade Program which bundled insurance into the price, Apple Upgrade does not. You will need to add AppleCare+ for an additional monthly fee if you want peace of mind. This is crucial because you must return the leased device in "good working condition".

• Soft Credit Check: Applying for the program through Klarna requires a soft credit check, which won't impact your credit score.

• Missed Payments: While rumors suggested Apple might lock your device if you miss a payment, sources confirm this isn't true. Missed payments roll over, but if you miss three consecutive months, the lease is terminated, the balance is due, and it could go to collections.

• Excluded Devices: Not every product is eligible. You cannot currently lease an iPhone 16, Mac mini, or Studio Display through the program.

Is It Worth It?

If you are someone who strictly upgrades their iPhone every year or their Mac every two to three years, the Apple Upgrade program offers a seamless, highly predictable way to do it without dropping a massive lump sum. It essentially treats your tech as a utility bill.

However, if you typically hold onto your devices for four or five years, or you prefer to hand down your old iPads and Macs to family members, traditional financing or buying outright remains the smarter financial play.