Apple launched a hardware leasing program provided by Klarna on Tuesday, with iPhone leases starting at $17.99 per month and the program is only available in the United States.
The program, Apple Upgrade, is available at the Apple Store online, in the Apple Store app and at US Apple Store locations, Apple said. It offers 12 and 24 month lease terms for iPhone and Apple Watch, and 24 and 36 month terms for Mac and iPad.
Leasing starts at $17.99 per month for iPhone, $11.99 for Apple Watch, $24.99 for Mac and $11.99 for iPad, according to Apple.
At the end of the term, customers can upgrade to a new device under a new contract, buy the device for a one-time payment, or return it and exit the plan.
“At Apple, we put the customer first in everything we do,” said Karen Rasmussen, Apple Store online vice president, “and we’re excited that Apple Upgrade gives our customers, both online and in-store, a more flexible way to pay for the products they love.”
Apple has said it will no longer offer the iPhone Upgrade Program or iPhone Payments in the United States. Already registered customers can lease under Apple Upgrade if they qualify, use Apple Card monthly installments, buy outright or charge a carrier.
Monthly costs are lower than under a discontinued plan, but customers do not own the device at the end of the term. Apple said the iPhone 17 Pro 256GB with a purchase price of $1,099 carries a standard monthly payment of $31.99 over 24 months, or $45.99 over 12 months. Under the iPhone Upgrade Program the same model costs $57 per month over two years, with ownership at the end of the term. That plan also requires customers to purchase AppleCare coverage; under Apple Upgrade, AppleCare is selected.
Applicants are subject to a soft credit check that doesn’t affect their credit score, and no deposit is required, Apple said. Its terms state that customers can receive large payments for early termination of the lease, and that the lease that is not completed, upgraded or purchased is a month-to-month plan for up to six months, during which the payments may increase.
Leases are available to US residents only and may not be issued through Apple at Work to small businesses or enterprises, or through Apple’s education, government or employee purchase programs, per Apple’s terms. Apple has not announced a UK launch. Klarna already offers installment payments to UK consumers through partners including Airbnb, which is launching Pay Over Time with Klarna to UK visitors in 2023.
In the UK, the Financial Conduct Authority began regulating deferred payment credit on 15 July 2026. The regulator defines this as interest-free debt payable in 12 or fewer installments over 12 months or less, and says agreements taken before that date remain unregulated.
The launch follows a price hike across Apple’s range. Last month Apple raised the prices of the Mac and iPad by $200 or more on some models. CEO Tim Cook said higher iPhone prices were inevitable due to the cost of memory and storage chips, the demand for which has increased in artificial intelligence companies.
Apple shares rose slightly in early trading on Tuesday, while Klarna shares fell slightly. Apple briefly passed the $5 trillion mark earlier this year and reported record iPhone sales in the last quarter of 2025, with total revenue of $144bn.
John Ternus takes over from Cook as CEO on September 1, just before Apple is expected to announce the foldable iPhone.
