Apple Launches ‘Apple Upgrade’ Device Rental Program: Products, Pricing, and Availability

Apple has officially unveiled a comprehensive hardware subscription and leasing framework called Apple Upgrade. Developed in partnership with financial technology provider Klarna, the service allows consumers to lease flagship iPhones, Mac computers, iPads, and Apple Watches through predictable monthly installments instead of paying full retail prices upfront.

The introduction of the Apple Upgrade program marks a major shift in how the Cupertino technology giant distributes hardware. By replacing its previous iPhone Upgrade Program and standalone financing options, Apple has streamlined its product accessibility under a unified leasing model that spans multiple hardware categories.

Main News Details

The Apple Upgrade program operates as a direct hardware lease rather than a traditional hire-purchase agreement. Customers choose an eligible device online or inside Apple Retail Stores, select a commitment term, and undergo a quick soft credit check powered by Klarna.

Lease durations are structured based on typical hardware refresh cycles:

• iPhones and Apple Watches carry 12-month or 24-month lease terms.
• iPads and Mac computers offer 24-month or 36-month lease terms.

Upon reaching the end of the initial lease term, subscribers are given three distinct choices:

1. Upgrade and Return: Return the existing device in good working order and start a new lease with the latest generation model.
2. Outright Purchase: Pay a one-time buyout fee calculated through Klarna to retain ownership of the hardware.
3. Exit the Program: Return the hardware to an Apple Store or via a prepaid mailer kit to close the account without further obligation.

Key Rule: Apple guarantees that if a customer chooses to buy out the hardware at the end of the term, the total combined expenditure across all monthly payments and the final buyout fee will not exceed the original retail price.

Key Highlights

Detailed Explanation

Eligible Products and Exclusions

While the Apple Upgrade program covers a significant portion of Apple’s current lineup, the company has deliberately restricted the service to specific primary tiers.

Eligible Products:

• iPhones: iPhone 17 series, iPhone 17 Pro, iPhone 17 Pro Max, iPhone Air, and iPhone 17e.
• Mac Computers: MacBook Air, MacBook Pro, iMac, and Mac Studio.
• iPads: iPad Pro, iPad Air, and iPad mini.
• Apple Watches: Apple Watch Series 11, Apple Watch Ultra 3, Apple Watch Hermès Series 11, and Apple Watch Hermès Ultra 3.

Program Exclusions:

To maintain focused tiering, Apple has excluded entry-level budget models and select peripherals from the Apple Upgrade catalog. Currently, the standard base iPad (A16 edition), Mac mini, Studio Display, Apple Watch SE, and older generation iPhones (such as the iPhone 16 family) cannot be leased under this initiative.

Apple Hardware Catalog
 ├── Eligible for Lease
 │    ├── iPhones (iPhone 17, 17 Pro, 17 Pro Max, Air, 17e)
 │    ├── Macs (MacBook Air, MacBook Pro, iMac, Mac Studio)
 │    ├── iPads (iPad Pro, iPad Air, iPad mini)
 │    └── Apple Watches (Series 11, Ultra 3, Hermès)
 └── Excluded from Lease
      ├── Base iPad (A16)
      ├── Mac mini & Studio Display
      └── Apple Watch SE

Complete Pricing Structure

Monthly rates vary depending on the device category, total storage capacity, and selected lease duration.

iPhone Rental Rates:

• iPhone 17e: Starts at $17.99 per month (24-month lease).
• iPhone 17: Starts at $22.99 per month (24-month lease).
• iPhone Air: Starts at $28.99 per month (24-month lease).
• iPhone 17 Pro: Starts at $31.99 per month (24-month lease).
• iPhone 17 Pro Max: Starts at $34.99 per month (24-month base storage) up to $83.35 per month for maximum storage configurations on 12-month short-term leases.

Mac Rental Rates:

• MacBook Air: Starts at $24.99 per month (36-month lease).
• iMac: Starts at $28.99 per month (36-month lease).
• MacBook Pro: Starts at $38.99 per month (36-month lease).
• Mac Studio: Starts at $48.99 per month (36-month lease).

iPad Rental Rates:

• iPad mini: Starts at $11.99 per month (36-month lease).
• iPad Air: Starts at $15.99 per month (36-month lease).
• iPad Pro: Starts at $24.99 per month (36-month lease).

Apple Watch Rental Rates:

• Apple Watch Series 11: Starts at $11.99 per month (24-month lease).
• Apple Watch Ultra 3: Starts at $24.99 per month (24-month lease).
• Apple Watch Hermès Series 11: Starts at $40.78 per month (24-month lease).
• Apple Watch Hermès Ultra 3: Starts at $47.03 per month (24-month lease).

Operational Terms and Carrier Rules

Every leased iPhone remains factory unlocked, giving users carrier flexibility. However, Apple mandates that iPhone lease enrollments be tied to an active connection with major US network operators: AT&T, T-Mobile, or Verizon. Prepaid mobile services are strictly ineligible for iPhone lease activation.

Payment processing is fully integrated into the Klarna app. Subscribers paying via Apple Card earn 3% Daily Cash on every monthly payment installment. Missing a single payment rolls the balance into the following month without incurring immediate late penalty fees, though three consecutive missed payments result in lease termination and immediate acceleration of the full remaining balance.

Timeline

        July 2026                 Ongoing Phase               Term Completion
────────────┬───────────────────────────┬────────────────────────────┬─────────────
            │                           │                            │
   Official Launch of          Transition Period for          Choice to Upgrade,
   Apple Upgrade Lease         Existing iPhone Upgrade       Buy Out, or Return
   Program via Klarna          Program Accounts               Leased Hardware

• July 2026: Apple officially launches the Apple Upgrade program online and across physical retail locations. The legacy iPhone Upgrade Program and standalone hardware financing plans are retired.
• Transition Phase: Active members enrolled in the original iPhone Upgrade Program remain on their existing terms until eligible to upgrade, after which they transition directly into the new Apple Upgrade system.
• 12-36 Month Milestones: Customers reach their agreed lease maturity dates to execute trade-ins, buyouts, or device returns.

What is Confirmed

• Klarna Partnership: Financial underwriting and account administration are fully executed through Klarna.
• Multi-Category Reach: Leasing extends beyond smartphones to encompass desktop and portable Macs, tablets, and smartwatches.
• No Price Markup on Buyout: Choosing to purchase the device at the end of the term costs no more than the standard retail list price when factoring in prior lease payments.
• Unlocked Hardware: Leased iPhones are factory unlocked despite requiring activation with AT&T, T-Mobile, or Verizon.

What is Not Confirmed

• International Rollout Schedule: Apple has not formally confirmed when or if the Apple Upgrade leasing program will expand beyond its initial launch market in the United States.
• Future Hardware Expansion: Official confirmation remains unavailable regarding whether budget devices like the base iPad or specialized hardware like Apple Vision Pro will eventually join the program.
• Enterprise Bulk Leasing Integration: While designed for individual consumer accounts, specific enterprise or commercial multi-device leasing tiers under this specific Klarna framework have not been detailed.

Why This News Matters

The creation of the Apple Upgrade program arrives during a period where component costs—particularly memory chips and advanced processor silicon-have pushed retail consumer electronics prices upward. Lowering the barrier to entry through structured monthly leases allows consumers and creative professionals to access premium hardware without bearing hefty upfront capital expenditure.

For Apple, shifting customers toward recurring subscription-like hardware cycles establishes a steady revenue model while encouraging higher user retention. By standardizing 12 to 36-month hardware returns, Apple secures a consistent pipeline of pre-owned, high-quality devices to fuel its certified refurbished secondary market.

What Happens Next

Customers interested in leasing Apple hardware can apply directly through the official Apple website, the Apple Store mobile app, or by visiting an Apple Store location. Applicants should ensure they have access to the Klarna mobile application to manage ongoing payments and review credit limits.

Existing members of the legacy iPhone Upgrade Program can continue making scheduled payments as normal. When their next device upgrade window opens, they will be prompted to select their new device under the updated Apple Upgrade program structure.

Conclusion

The launch of Apple Upgrade modernizes how hardware access is delivered across Apple’s primary consumer categories. By offering lower monthly entry costs across iPhones, Macs, iPads, and Apple Watches, the program gives users the flexibility to stay equipped with modern technology on clear, structured terms.

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