Apple is reportedly preparing to launch its new Apple Upgrade program in the U.S. on Tuesday, July 28, introducing a leasing option for several of its devices while gradually replacing the long-running iPhone Upgrade Program for new customers.
Bloomberg’s Mark Gurman said the company will stop accepting new enrollments for the iPhone Upgrade Program on the same day that Apple Upgrade becomes available. However, customers who are already part of the existing program will continue using it for the time being.
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“The company will not allow new enrollments starting Tuesday when Apple Upgrade launches, but users currently in the iPhone Upgrade Program will be able to continue for the time being on their plan. One big difference between the iPhone Upgrade Program and Apple Upgrade will be that the new offering won’t include AppleCare. The other big difference is that one is a leasing program and one is financing. And there’s a new financial backer: The new offering is supported by Klarna Group Plc instead of Citizens Bank.”
Apple has partnered with Klarna for the new program, which focuses on leasing instead of traditional financing. The company reportedly plans to offer 24-month terms for iPhones and Apple Watches, while iPads and Macs will have 36-month agreements.
At the end of the lease, customers will reportedly have options to return the device, upgrade to a newer model, or pay a fee to keep it.
Qualified Apple Devices
The report says most current iPhone, iPad, Mac, and Apple Watch models will be eligible for Apple Upgrade. However, several lower-priced products, including the iPhone 16, Apple Watch SE, entry-level iPad, and MacBook Neo, are not expected to qualify.
Apple also reportedly plans to market the program with lower monthly payments than its existing financing options. Unlike the current iPhone Upgrade Program, monthly payments will not include AppleCare+ coverage, making the new offering a simpler leasing service for customers who prefer upgrading devices regularly.
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