Apple Officially Debuts Klarna-Backed ‘Upgrade’ Leasing Program, a Week After First Reports Surfaced
Apple officially launched Apple Upgrade on Tuesday, a new leasing program built with Klarna that lets customers pay monthly for an iPhone, Apple Watch, Mac, or iPad rather than buying outright, arriving just over a week after Bloomberg first reported the plan was coming.
Apple has spent much of this year navigating rising component costs, and Tuesday’s launch gives the company a new lever to keep devices feeling affordable even as ‘the unavoidable’ sticker prices climb elsewhere in its lineup.
Rather than building the financing infrastructure itself, Apple leaned on Klarna, an outside partner already known for consumer lending, letting it offer flexible monthly pricing without absorbing the credit risk directly.
Klarna Handles the Financing, Apple Keeps the Relationship
Apple said Apple Upgrade is a leasing program provided by the Swedish company, with Apple Store Online vice president Karen Rasmussen framing the launch around giving customers a more flexible way to pay for the products they love, both online and in-store.
Under the structure, customers who first enroll can further lower their monthly payments by trading in a current device through Apple Trade In, and those paying with Apple Card earn 3% Daily Cash back on lease payments.
Approval requires only a soft credit check that Apple says won’t affect a customer’s credit score, with in-store customers able to walk out with a new device immediately and online customers choosing delivery or pickup.
A Cheaper Alternative as Prices Climb Elsewhere
CNBC reported that an unlocked iPhone 17 Pro will run $31.99 a month for a 24-month lease, or $45.99 for 12 months, notably cheaper than many carrier installment plans that often charge $25 to $35 monthly for flagship phones.
The outlet also connected the launch’s timing to broader pricing pressure across Apple’s lineup, noting that Morgan Stanley has estimated Apple may need to raise the upcoming iPhone 18 Pro’s price by roughly $200 just to preserve its current profit margins.
Entry-level devices including the iPhone 16, Apple Watch SE, and MacBook Neo aren’t part of the leasing program, keeping the offer focused on Apple’s higher-margin current-generation hardware rather than its budget tier.
Official Launch Confirms What Leaked a Week Earlier
The official rollout follows an earlier Bloomberg report that said Apple was preparing a lease-to-own program, with the July 28 launch date, pricing, and lease terms broadly aligning with what the report described.
Such accurate leaks have become common before major Apple announcements, but Tuesday’s launch ends months of speculation over how Apple would address affordability concerns, as Apple eyes diversifying its component supplier lineup.
With the iPhone Upgrade Program now discontinued for new signups, existing members retain their current plans for the time being.
While new customers face a straightforward choice between leasing through Klarna, financing through Apple Card Monthly Installments, paying outright, or opting for carrier financing instead.
