Apple is making it easier for consumers to access its latest devices without paying the full purchase price upfront. The company has introduced a new leasing programme that allows customers to use eligible Apple products for a monthly fee instead of buying them outright.

Launched in partnership with buy now, pay later provider Klarna, the Apple Upgrade Programme arrives as consumers face higher living costs and the electronics industry grapples with rising hardware prices driven by AI-related demand for memory and storage chips.

The initiative also signals a broader shift in how premium technology companies are encouraging customers to upgrade their devices more frequently.

Apple replaces its iPhone Upgrade Program

The new Apple Upgrade Program replaces Apple’s previous iPhone Upgrade Program, which allowed customers to finance and eventually own their devices.

Under the new model, customers lease eligible Apple products for a fixed monthly payment. At the end of the lease, they can either return the device, purchase it, or begin a new lease for a newer model.

Unlike the previous program, AppleCare+ is no longer included by default and must be added as an optional monthly service.

Monthly payments start under $20

The leasing programme offers different contract lengths depending on the product category.

Eligible iPhones and Apple Watches are available on 12- and 24-month leases, with monthly payments starting at $17.99 for the iPhone 17e and $11.99 for the Apple Watch Series 11.

Mac computers and iPads are offered on longer lease terms ranging from 24 to 36 months. Monthly pricing begins at $24.99 for Mac models and $11.99 for select iPads.

Customers may also lower their monthly payments by trading in eligible Apple devices.

Klarna handles financing and eligibility

The program is administered through Klarna rather than Apple itself.

Customers must create a Klarna account and complete a soft credit inquiry before approval. Because the inquiry is classified as a soft credit check, it generally does not affect a consumer’s credit score.

Apple says no security deposit is required to join the programme.

If customers miss payments, Klarna does not charge traditional late fees. However, leases may be terminated after three months of missed payments, and additional charges could apply depending on the agreement.

Which Apple products qualify?

The leasing programme focuses on Apple’s newest hardware instead of older devices.

Eligible smartphones include the entire iPhone 17 lineup, including the iPhone 17e, Air, Pro, and Pro Max.

For wearables, customers can lease the Apple Watch Series 11 and Apple Watch Ultra 3.

The Mac lineup includes the latest MacBook Air, MacBook Pro, iMac, and Mac Studio, while the newest iPad Air, iPad Pro, and iPad mini models are also part of the program.

Older devices, including the iPhone 16 series, Apple Watch SE, and MacBook Neo, are not eligible.

Why Apple is introducing leasing now

The launch comes as consumers continue to face pressure from inflation and higher everyday expenses.

At the same time, demand for AI hardware has increased the cost of memory and storage components, contributing to higher prices across the consumer electronics industry. Apple recently increased prices on several iPad and MacBook models, citing component shortages, while analysts expect future flagship iPhones to become even more expensive.

Industry observers believe leasing could make premium Apple products more accessible by spreading costs over several years instead of requiring a large upfront payment.

Leasing could become Apple’s long-term upgrade strategy

The new programme reflects a growing trend toward subscription-style ownership in consumer technology.

Rather than encouraging customers to keep devices for several years, leasing gives users a predictable monthly payment and a simpler path to upgrading as new hardware becomes available.

As flagship smartphones continue approaching or exceeding the $2,000 mark, leasing programmes may become an increasingly important option for consumers who want access to the latest technology without paying the full retail price at purchase.