Rafomac News, Tech & Trends That MatterApple is shaking up how you buy its products with a brand-new leasing option starting as low as $12 a month. But what does this really mean for your wallet and ownership? Here’s everything you need to know about the Apple Upgrade Program.
What Exactly Is the Apple Upgrade Program?
Apple has launched a fresh leasing program for many of its products, including iPhones, iPads, Macs, and Apple Watches. Instead of buying outright or financing in the traditional sense, you lease the device through Apple’s platform, online, via app, or in-store. This program partners with Klarna, a payment service that manages the leasing process. Unlike traditional financing, during the lease period Klarna technically owns the device—not you.
The leasing terms vary by product category. iPhones and Apple Watches offer 12 or 24-month leases, while Macs and iPads are available on 24 or 36-month plans. Payments start as low as $11.99 per month for the Apple Watch Series 11 and iPad Mini. iPhones begin at $17.99, and Mac leases start at $24.99 monthly. These lower monthly payments are easier on the budget but come with a catch—you don’t own the product until you clear the remaining balance at lease end.
What Happens When Your Lease Ends?
Once your lease term wraps up, you have three choices. First, return your device in good condition and start a new lease on the latest model—Apple’s preferred route to keep you in the upgrade cycle. Second, simply return the device and exit the program if you want out. Third, pay off the remaining balance via Klarna to take full ownership of your product.
For context, take the iPhone 17 Pro priced at $1,099. Leasing it on a 12-month plan costs $45.99 monthly, totaling $551.88. On a 24-month lease, the rate drops to $31.99 monthly for a total of $767. In either case, you’d owe the leftover balance—around $331—if you want to fully own the phone after leasing.
You can also extend your lease for six months beyond the term while continuing payments toward ownership. But if you neither upgrade nor return the device, Klarna will automatically charge the remaining amount and transfer ownership to you.
Leased iPhones and Carrier Lock-In Explained
Leasing an iPhone requires committing to one of the major U.S. carriers—T-Mobile, AT&T, or Verizon—at checkout. The phone you get will be unlocked, allowing you to switch carriers later on. Although theoretically you can cancel your initial carrier and move to alternatives like Mint Mobile or MetroPCS, expect some hurdles in practice before that works smoothly.
Leaving the program early or upgrading before your lease ends comes at a price. You must pay all remaining lease fees plus any outstanding balance upfront, making early exits or upgrades potentially costly. However, you can still take advantage of Apple’s standard 14-day return window after purchase, even with a leased device.
AppleCare and Trade-Ins with Leasing
AppleCare isn’t bundled with the lease, but you can add it within 60 days of signing up. This is crucial because leased devices must be returned in good condition to avoid penalty fees. AppleCare helps cover repairs for drops or screen damage so you can continue in the program hassle-free.
If you plan to use trade-in credits to reduce your upfront costs, that’s possible but only at the lease’s initiation. Unfortunately, you can’t make additional down payments to lower your monthly leasing costs—unlike car leases, where putting money down is a common way to ease monthly bills.
Which Apple Products Can You Lease?
Not all Apple devices qualify. Lower-tier products like the iPhone 16 and 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, entry-level iPads, and Studio Display are excluded. If you’re using the previous iPhone Upgrade Program, brace yourself—once your current cycle ends, it won’t be renewed. Your options then boil down to leasing under this new program, conventional financing, or outright purchase.
What About the Apple Card?
Good news if you have the Apple Card: its 0% financing option for Apple products remains intact. You can still purchase devices through the Apple Card and pay over 6, 12, or 24 months. Plus, using the Apple Card with the new lease program still rewards you with 3% daily cash back on your payments.
Leasing vs Financing: What’s the Real Difference?
The leasing program lowers monthly payments compared to financing. For example, a $1,200 iPhone financed over two years might cost about $50 monthly, and after that period, you own the phone. Under the lease, your monthly payment could drop to $30, but you owe a balance at lease end to own the device.
Leasing essentially lets you use the phone for a large part of its value—about 66% to 70%—over the lease term without full ownership unless you pay that final balance. The program suits users who want to stay on the latest tech without the upfront costs, not those who prefer to keep their devices long term.
Apple’s new program reflects a wider trend in tech—shift from ownership toward ongoing payments and service models. Whether that’s a good deal depends on your finances and appetite for upgrading often.
