Apple Upgrade: 20 Things to Know Before Leasing an iPhone, iPad, or Mac - MacRumors

What the report says

MacRumors reports that Apple has ended its iPhone Upgrade Program and introduced Apple Upgrade, a new leasing option offered with Klarna. The program launched in the United States on July 28, 2026, and covers eligible iPhone, iPad, Mac and Apple Watch models. It is U.S.-only for now, and MacRumors says Apple has not indicated whether it will expand elsewhere.

Under the new arrangement, customers lease devices rather than automatically owning them at the end of the term. To keep a device, they must pay the remaining buyout amount; otherwise, they can return it or upgrade. Leased iPhones are unlocked, but buyers must select AT&T, Verizon or T-Mobile at checkout and use a supported postpaid plan. AppleCare+ is no longer bundled as it was under the iPhone Upgrade Program, so coverage must be bought separately.

MacRumors also highlights several payment and eligibility details. Klarna uses a soft credit check for approval, missed payments are added to the following month without late fees, and three consecutive missed payments can trigger lease termination and make the remaining balance due. The report says missed payments will not disable iPhone apps or services, though nonpayment can affect credit and may be sent to collections if unresolved.

The shift matters because it changes Apple’s device-financing mix from an upgrade-and-ownership model toward leasing, with Klarna handling key payment terms. Apple Card Monthly Installments remain available as a separate zero-interest purchase option, and some products, education discounts and refurbished devices are not eligible for Apple Upgrade.