Apple wants to be the company you rent your gadgets.

 

Apple wants to be the company you rent your gadgets from, not just buy them from.

Apple has officially launched Apple Upgrade, a leasing program that lets customers pay monthly for an iPhone, iPad, Mac, or Apple Watch rather than purchasing the device outright. Built in partnership with Klarna, the program replaces the iPhone Upgrade Program that Apple has offered since 2015 and expands the concept across nearly the full current hardware lineup. Lease terms run 12 or 24 months for phones and watches, and 24 or 36 months for iPads and Macs. Pricing starts at $31.99 a month for a 256GB iPhone 17 Pro on a 24-month term, $24.99 a month for a 256GB iPad Pro over 36 months, and $38.99 a month for a 16GB MacBook Pro over the same stretch. Notably, the iPhone 16, base iPad, and MacBook Neo are not eligible, and iPhone lessees must be on a postpaid plan with AT&T, T-Mobile, or Verizon.

The structure of the program carries some meaningful fine print. Apple requires no security deposit and performs only a soft credit check through Klarna, but Klarna owns the billing relationship for the life of the lease and handles payments through its own app. Early upgrades are permitted but come with a fee that scales with how many payments remain. Devices must be returned in good condition, or damage charges apply, and unlike the old iPhone Upgrade Program, AppleCare is not bundled into the lease price. Customers have 14 days to cancel without penalty, but missing that window triggers an early termination fee. At the end of a full term, customers can upgrade, return the device, or pay a one-time fee to buy it outright, though waiting more than six months after the term ends triggers an automatic purchase charge.

The launch marks a meaningful shift in how Apple positions its hardware business, moving from a model centered on ownership toward one where monthly payments are the norm and keeping a device is an extra step rather than the default outcome.

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