Apple Inc. has launched the Apple Upgrade program, allowing U.S. customers to lease iPhones, iPads, Macs, and Apple Watches through Klarna [1, 2].

This shift represents a strategic move to lower the barrier to entry for high-end hardware. By offering a lease-based alternative to full purchase prices, Apple can compete more directly with carrier-based upgrade plans and attract consumers who prefer monthly payments over large upfront costs [6, 7].

The program replaces the previous iPhone Upgrade Program by expanding the lease model to a wider range of the company's ecosystem [2]. Under the new terms, customers can obtain devices without paying the full purchase price at the start of the contract [3, 4, 5].

Lease terms are set for 12 months [1]. For those seeking the latest smartphone, monthly payments for an iPhone 15 start at $30 [5]. Users interested in wearables can lease an Apple Watch with payments starting at $20 per month [3].

Apple partnered with the fintech company Klarna to manage the financing and lease logistics [1, 2]. This collaboration allows Apple to shift the credit risk and payment management to a third party while maintaining the hardware relationship with the consumer [2].

The initial rollout is limited to the United States [3, 5]. This allows the company to test the lease model's impact on hardware refresh cycles before considering a wider international release.

“Apple launched the "Apple Upgrade" program, a lease‑based offering.”

The transition from a purchase-and-trade-in model to a formal lease structure suggests Apple is prioritizing recurring revenue and faster hardware turnover. By lowering the monthly cost of entry, Apple can increase its active user base and ensure that a larger percentage of customers upgrade to the newest models every year, mirroring the subscription economy seen in software services.