Apple Upgrade does not end with ownership by default. When a lease term is up, Apple gives three explicit choices, upgrade to a new device, buy the current one outright with a one-time payment, or return it, and if a customer does none of the three, Apple says the lease simply converts to a month-to-month lease for up to six months.
That structure, along with a short list of Klarna eligibility requirements, is the part of Apple Upgrade that gets the least attention next to its headline monthly prices. Both matter more than the sticker figure once a reader is actually deciding whether to lease.
Key facts on Apple Upgrade’s terms
| Item | What Apple publishes |
|---|---|
| Lease provider | Klarna Inc. |
| iPhone and Apple Watch terms | 12 or 24 months |
| Mac and iPad terms | 24 or 36 months |
| End of term, three choices | Upgrade, buy outright, or return |
| If none is chosen | Converts to month-to-month for up to six months |
| Availability | US residents only |
What Klarna requires before it approves a lease
Apple Upgrade is not underwritten by Apple. The lease is provided by Klarna, and Apple’s own eligibility list names six requirements: being 18 or older, holding a valid Social Security number or ITIN, having an accepted credit or debit card, keeping an Apple Account in good standing, holding a Klarna account, and being able to receive security texts. Apple also states the program is limited to US residents.
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None of that appears in the monthly price Apple advertises for iPhone 18 Pro or any other device. A reader comparing $34.99 a month against $49.95 a month under Apple Card Monthly Installments is comparing two different approval processes, not just two prices.
Three ways out, and a fourth if you do nothing
- Upgrade: move to a new device and, in effect, start a new lease.
- Buy outright: pay Apple’s one-time price to keep the device you have been leasing.
- Return: send the device back, provided it is in good condition. Apple states that damage fees may apply.
- Do nothing: the lease converts to month-to-month, for up to six months, according to Apple’s own wording.
Ownership only happens through the second option, and Apple has not published what the buyout price is for any specific device or configuration. A lease payment schedule alone does not tell a reader what full ownership costs at the end.
How this compares with buying on installments
| Route | Who owns the device after the term | What ends the arrangement |
|---|---|---|
| Paying in full | The buyer, immediately | Nothing further is owed |
| Apple Card Monthly Installments (0% APR, 24 months for iPhone) | The buyer, once payments finish | Final payment completes ownership |
| Apple Upgrade lease | Apple and Klarna, unless the buyout option is used | Upgrade, buyout, return, or automatic month-to-month |
Apple Card Monthly Installments, detailed on Apple’s pricing page, is a 0% APR installment plan, not a lease. Once the 24 payments are made, the device belongs to the buyer outright, with no upgrade, buyout, or return decision to make. Apple Upgrade is built around the opposite assumption, that most customers will not keep paying past the term without choosing to.
AppleCare is a separate decision either way
Apple’s language for Apple Upgrade says customers “can add an AppleCare subscription,” confirming it is not bundled into the lease payment. That is a genuine change from the retired iPhone Upgrade Program, which included AppleCare in its single monthly figure. Whichever end-of-lease path a customer eventually takes, the decision to add coverage has to be made and paid for on its own.
What has not been confirmed
- Apple has not published a buyout price for any leased device at the end of its term.
- Apple has not stated the monthly rate that applies once a lease converts to month-to-month.
- Apple has not said what happens if a customer misses payments during the automatic month-to-month period.
- Apple has not said whether Apple Upgrade will expand outside the United States.
Apple Upgrade is open now, the same Saturday, September 12 that iPhone 18 Pro pre-orders opened at 5 a.m. PT. The phone reaches stores Friday, September 18. Our Pro versus Pro Max comparison and the full event recap cover the rest of what Apple announced.
