Apple Will Now Let You Lease Its Devices: The End of Tech Ownership as We Know It

Apple has just made a historic shift in how it sells its most popular tech. In partnership with Klarna, the tech giant officially launched a device leasing programme called ‘Apple Upgrade.’ The programme launched in the United States on Tuesday, July 28. This massive move completely replaces Apple’s previous iPhone Upgrade Program.

Instead of dropping thousands of dollars upfront to own your tech, the new model allows customers to lease devices through monthly payments. It is a pivot from owning to borrowing, and it completely changes how we upgrade our daily gear.

Key Takeaways

• Launching in the United States on Tuesday, July 28, 2026, Apple Upgrade marks a major shift in retail.
• Customers can now lease select categories of flagship devices, including iPhones and Macs.
• Tablets and wearables like iPads and Apple Watches also qualify for the new leasing structure.
• Monthly leasing rates start at a highly competitive $17.99 for an iPhone.

Which Devices Are Eligible for the Programme?

While the programme covers a massive chunk of the current lineup, Apple is playing favourites with what actually makes the cut. If you want the M5 MacBook Air, M5 MacBook Pro, or M4 iMac, you are in luck. The Mac Studio, iPad Pro, and iPad Air made the cut. The iPad mini, Apple Watch Ultra 3, and Apple Watch Series 11 are also on the approved list.

However, if you were hoping to lease the absolute bleeding edge of mobile tech, there is a catch. Apple excluded certain models from the programme, notably the brand-new iPhone 16 and iPhone 16 Plus. Additionally, the standard iPad, Apple Watch SE, and MacBook Neo are not eligible for leasing. The Mac mini and Studio Display are also excluded from the lineup.

Leasing Terms and Costs

The core of this major transition is breaking down massive price tags into manageable monthly chunks. Apple Upgrade offers 12- and 24-month leasing terms for the iPhone and Apple Watch. Meanwhile, if you are looking for a Mac or an iPad, you can lock in 24- and 36-month leasing terms.

The starting prices are surprisingly competitive for anyone looking to avoid a massive upfront cost. Monthly leasing rates under Apple Upgrade start at $17.99 for the iPhone and $11.99 for the Apple Watch. For larger devices, rates begin at $24.99 for a Mac and just $11.99 for an iPad. You can even reduce your initial monthly lease payment by trading in an eligible device through Apple Trade In during enrolment. Be aware, however, that Apple Upgrade programme terms state that Apple retains the right to restrict device functionality if a lease payment is missed.

How to Apply and Qualify

Getting approved for the programme involves a few financial hurdles, but Apple designed this process to be seamless. In the official rollout documentation, Apple and Klarna clarified the financial requirements: “All applicants will be subject to a soft credit inquiry that will not impact their credit score. Once approved, they can complete their transaction as usual.” In-store customers can enjoy their new device right away, while online customers can choose delivery or in-store pickup.

To qualify for Apple Upgrade, applicants must be U.S. residents aged at least 18, or the legal age in their respective state. You also need full legal capacity, an Apple Account in good standing, and a connected Klarna account. Applicants must provide a valid Social Security Number or ITIN, use an accepted non-prepaid U.S. credit or debit card, and have the ability to receive SMS security verification codes. Crucially, leasing an iPhone requires selecting an eligible postpaid carrier plan such as AT&T, T-Mobile, or Verizon, and cannot be used with a prepaid plan.

What Happens When the Lease Ends?

The biggest distinction between leasing and buying comes at the conclusion of your contract. When your term wraps up, you do not automatically own the device you have been using for the past year or two.

When the time is up, customers have three distinct choices.

• You can upgrade to a new device by returning the old one, keeping you locked into the Apple ecosystem.
• You can purchase the leased hardware with a one-time payment.
• You can simply return the device to exit the programme.

If you want the newest tech sooner, participating in the programme allows you to upgrade early before the standard eligibility date, provided you pay an early upgrade fee.

Whichever path you choose, condition matters. Returned devices upon lease end or an early upgrade must be in working order and good condition, with damaged hardware incurring potential additional charges.

FAQs

1. Does Apple Upgrade impact my credit score?

No, all applicants undergo a soft credit inquiry through Klarna, which does not impact their credit score.

2. Which Apple products can I lease?

Customers can lease select models of the iPhone, Apple Watch, Mac, and iPad. Newer flagship items like the iPhone 16 are excluded.

3. Can I buy the device at the end of the lease?

Yes, you have the option to purchase the leased device with a one-time payment.

4. Is AppleCare included in the monthly fee?

No, AppleCare is not included in the standard monthly leasing fee. Customers must purchase AppleCare separately.

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