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Apple's iphone upgrade program
Apple is preparing to roll out a new device leasing program called "Apple Upgrade" in the US starting July 28, marking one of the most significant shifts in how the company sells its hardware in years. According to a Bloomberg News report citing people familiar with the matter, the program will be backed by Swedish fintech firm Klarna Group, which will handle underwriting, credit checks and monthly collections, allowing Apple to expand leasing across its lineup without carrying credit risk on its own books.
How program will workApple Upgrade will function as a subscription-style lease, covering most iPhone, Mac, iPad and Apple Watch models. Lease terms are set at 24 months for iPhones and Apple Watches, and 36 months for Macs and iPads. At the end of the term, customers will have multiple options: upgrade to a newer device early, pay off the remaining balance to own the device outright, continue making payments, or simply return the hardware to Apple. The service will be available both through Apple's physical retail stores and online, and is expected to largely replace the company's existing iPhone Upgrade Program, with new enrollments in the legacy scheme set to be phased out.
iPhone 18 Pro: What's excluded
Not all devices will qualify for the new leasing option. Entry-level and budget hardware, including the iPhone 16, Apple Watch SE, the base iPad, and the MacBook Neo, are reportedly excluded from the program. Unlike the older Upgrade Program, Apple Upgrade will also not come bundled with AppleCare+ damage protection, meaning customers would need to purchase that coverage separately if desired.
iPhone 18 Pro: Why now
The launch comes at a time when Apple has raised prices across its iPad and MacBook lineups, driven by surging memory and storage chip costs tied to the AI industry's data-centre buildout, while notably keeping iPhone pricing unchanged. By shifting more of its hardware sales into a recurring, subscription-style model, Apple is seen as aiming to smooth out the revenue swings that typically occur between annual iPhone launches, while also feeding a steady pipeline of returned devices into its refurbished and trade-in programs.
iPhone 18 Pro: Mixed reactions
The move is also expected to help make premium Apple devices more accessible as average selling prices continue to climb, though it has drawn mixed reactions. Supporters see it as a low-friction way to stay on the latest hardware, while critics have raised concerns that it could nudge consumers toward a cycle of perpetual leasing rather than outright ownership, potentially increasing long-term costs. News of the program has been received positively by markets, with Apple shares trading higher following the report.
Apple has not yet issued an official confirmation of the program's details, and further specifics are expected closer to the July 28 launch date.
Prabhat Shukla
Senior Copy Editor
Prabhat Shukla is Senior Copy Editor at ET Now with over 2.5 years of experience in reporting and strategic storytelling. He is a graduate in Economics (Honours) from Lucknow University and holds a Post-Graduate Diploma in English Journalism from the Indian Institute of Mass Communication (IIMC). He currently covers the technology and automobile beats, closely tracking developments across consumer tech, mobility, and innovation. Technology has been at the core of his reporting, with cybersecurity being a key area of interest. He has reported extensively on major technology launches, often breaking news and covering launches first, and major industry events like indian mobile congress 2024 & 2025 where major theme for the 2025 edition was cyber secure India. Also, he has broken several exclusive stories in the technology space. He has interviewed prominent technologists and industry leaders, bringing expert insights to a wider audience. His reporting focuses on accuracy, speed, and explaining complex technology trends in a simple and impactful manner. Also during International Solar Alliance’s annual meet in 2024 he got opportunity to interview President of ISA, Prahalad Joshi and other diplomats from member nation of ISA. He has bylines in prominent print and digital media platforms.
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