At first glance, spreading out the cost of a new iPhone, iPad, or Mac over several years sounds like a smart move. Apple just rolled out its new Upgrade program, allowing customers to lease nearly any major product for a low monthly fee. While paying $32 a month for an iPad Pro sounds much better than dropping $1,199 all at once, you need to read the fine print before signing any paperwork.
Remember that you do not own the device you are paying for
The biggest difference between this new program and a standard payment plan is that you are only leasing the hardware. When your 12, 24, or 36-month term is over, you do not automatically own the device.
Don’t miss the best of The Mac Observer
Set us as a preferred source and our Apple reporting ranks higher in your Google Search results and Discover feed — one tap, no account changes.
According to Apple’s rules, you must return the gadget in “good working condition” when your lease ends. If you drop your phone or scratch up your laptop, you might face damage fees when you try to hand it back. If you decide you actually want to keep the hardware permanently, you will have to pay the remaining balance to buy out the rest of the lease.
Ending the lease early comes with a hefty price tag
If you decide you no longer want the device or you simply get tired of the monthly payments, you cannot just return it and walk away. Terminating the lease early will trigger “substantial” fees, which basically require you to pay out the rest of the contract anyway.
The same rule applies if you want to upgrade to a newer model before your agreed-upon term is over. The fees change depending on how many months you have left, but it makes upgrading early an expensive choice.
AppleCare protection is no longer bundled into the monthly cost
The old iPhone Upgrade program included AppleCare+ automatically, giving buyers some peace of mind against accidental damage. The new system handles things differently.
- AppleCare+ is now a separate, extra cost you have to add on yourself.
- If you skip the protection plan, you run a much higher risk of facing those end-of-lease damage fees.
- Klarna handles all the billing and lease agreements, not Apple directly.
- If you fail to return the device or buy it out at the end of the term, you will automatically be charged monthly for up to six more months, and the payment amount might increase.
While the new leasing options make getting a premium MacBook or iPad easier on your wallet today, the long-term rules require careful planning. If you are someone who upgrades constantly or tends to drop your phone, those extra fees might outweigh the benefits of the low monthly price.
Discussion