Apple Upgrade may replace the iPhone Upgrade Program
Apple plans to launch Apple Upgrade, a Klarna-backed leasing program for most iPhones, iPads, Macs, and Apple Watches on July 28 in the US, according to Bloomberg reporting cited by CNET. The move follows recent hardware price hikes and could end new enrollments in the Apple iPhone Upgrade Program.
Apple has not officially announced the plan. Still, the reported timing matters: it arrives less than a month after Cupertino raised prices across much of its lineup, blaming a global shortage of memory and storage chips. For more Future Tech coverage, see our Future Tech & AI Wonders hub.
Key Takeaways
- Apple Upgrade would lease most iPhones, iPads, Macs, and Apple Watches via Klarna, reportedly starting July 28 in the US.
- Terms sound like a car lease: 24 months for iPhones and Watches, 36 months for Macs and iPads, with options to upgrade, return, or buy out.
- AppleCare would not be bundled; Apple may stop new enrollments in the Apple iPhone Upgrade Program and standard iPhone financing.
- iOS 27 beta code points to a Restricted Mode and Partner Finance Lock if leased devices fall behind on payments.
What is Apple Upgrade and how would it work?
Per CNET’s report of Bloomberg’s scoop, Apple Upgrade would work more like a car lease than today’s Apple financing. Customers could upgrade early, return the device at the end of the term, or pay the remaining balance to keep it. Some of those choices could carry extra fees.
Enrollment would require a soft credit check and would be offered through Apple’s website and retail stores. Marketing would stress lower monthly payments—not a lower sticker price. Shoppers who return a device pay for temporary use; those who keep it still owe its remaining value.
Not every product would qualify. The iPhone 16, Apple Watch SE, entry-level iPad, and MacBook Neo are reportedly excluded, along with business and education purchases. That focus would mainly aid sales of pricier hardware after recent jumps such as the MacBook Air from $1,099 to $1,299 and the iPad Air from $599 to $749.
How does this compare to the Apple iPhone Upgrade Program?
Today’s Apple iPhone Upgrade Program spreads the cost of an iPhone plus AppleCare+ with Theft and Loss across 24 interest-free payments. Customers can upgrade after making the equivalent of 12 payments and trading in their phone.
Apple Upgrade reportedly would not include AppleCare. Buyers who want coverage would purchase it separately, so the advertised monthly figure would not show the full cost. Apple also reportedly plans to stop accepting new enrollments in the existing upgrade program and in standard iPhone financing once the Klarna lease launches.
The company is not coming off a weak quarter. Apple called its latest results its “best March quarter ever,” with $111.2 billion in revenue and nearly $29.6 billion in net income for the three months ended March 28. The lease pitch looks less like a rescue and more like a way to keep sales flowing without rolling back higher prices.
Could Apple restrict a leased iPhone after missed payments?
Code in the iOS 27 beta, reported by 9to5Mac, describes App Managed Features that let an authorized financing app enroll an iPhone and run status checks. If a contract is not in good standing, system services could put the phone in Restricted Mode, blocking most apps while leaving a short allowlist such as Phone, Settings, Wallet, App Store, and Health.
The same framework introduces Partner Finance Lock, meant to stop users from erasing, reselling, or stripping a restricted device for parts. The financing partner would not get Find My location access; the lock is designed to survive erase or restore. There is no fixed missed-payment count in the code—the provider’s policies would decide when to lock.
9to5Mac did not find the references in the iOS 26.6 RC, so Apple may add them later or launch Apple Upgrade after that release. Details in beta code can still change. Until Apple confirms the program, treat July 28 and the lease terms as reported plans, not official policy.