Apple has unveiled a new subscription-based hardware programme that allows customers to lease its latest devices instead of buying them outright. Called Apple Upgrade, the service enables users in the United States to access new iPhones, iPads, Macs and Apple Watches through affordable monthly payments, offering a flexible alternative to traditional ownership.
The programme marks a significant shift in Apple’s sales strategy, moving beyond one-time purchases to a model focused on long-term customer relationships. By reducing the need for large upfront payments, Apple hopes to make its premium products more accessible while encouraging users to upgrade their devices more frequently.
Announcing the launch, Apple said the programme has been designed to give customers greater flexibility in how they own and use the company’s products. Rather than paying the full retail price, users can choose a lease plan that suits their needs and budget. At the end of the lease, they can return the device, buy it by paying its remaining value, or upgrade to a newer model.
The programme is available through Apple Stores, the Apple Store app and the company’s official website across the United States. Apple has partnered with global payments company Klarna to manage financing and customer approvals.
Unlike Apple’s earlier iPhone Upgrade Program, which was limited to smartphones, the new Apple Upgrade service covers multiple product categories. Customers can now lease iPhones, iPads, Mac computers and Apple Watches under a single programme, making it easier for users invested in Apple’s ecosystem to manage their devices.
Lease durations differ depending on the product. iPhones and Apple Watches are available on 12- and 24-month plans, while iPads and Mac computers can be leased for 24 or 36 months. Monthly payments start at $17.99 for an iPhone, $11.99 for an Apple Watch or iPad, and $24.99 for a Mac, making high-end Apple devices more affordable for many consumers.
Customers can further reduce their monthly payments by trading in eligible older Apple devices. Those who use an Apple Card will also continue to receive three per cent Daily Cash rewards on their monthly payments, adding another incentive for existing Apple customers.
Apple said the application process has been kept simple. Customers complete an online financing application through Klarna, which conducts a soft credit check that does not affect an applicant’s credit score. Once approved, users can select their preferred device, choose a lease duration and complete the purchase online or at an Apple Store.
At the end of the lease term, customers have three options. They can return the device without purchasing it, pay the remaining balance to own it permanently, or switch to a newer Apple product by signing a new lease agreement. The approach gives users more flexibility than conventional financing plans, particularly those who like to use the latest technology.
The launch comes at a time when the prices of premium smartphones, laptops and wearable devices continue to rise. For many consumers, paying the full cost of a flagship device in one instalment has become increasingly difficult. Apple’s monthly subscription model spreads that expense over a longer period, making newer devices easier to afford.
Industry analysts believe the programme could help Apple maintain stronger upgrade cycles. In recent years, consumers have been holding on to their smartphones and computers for longer because of incremental hardware improvements and rising prices. By lowering the financial barrier to upgrading, Apple hopes to encourage customers to replace their devices more often.
The programme is also expected to strengthen Apple’s ecosystem. Customers who lease multiple Apple products may be more likely to continue using Apple services such as iCloud, Apple Music, Apple TV+ and AppleCare+, creating stronger long-term engagement with the brand.
Another advantage for Apple is the opportunity to expand its refurbished products business. Devices returned at the end of lease agreements can be inspected, refurbished and resold, extending their lifespan and supporting Apple’s sustainability goals. The company has repeatedly highlighted its commitment to reducing electronic waste by increasing the reuse and recycling of materials.
Apple has confirmed that customers enrolled in its existing iPhone Upgrade Program will be able to transition to Apple Upgrade. At the same time, the company has discontinued its earlier iPhone Payments financing option, making Apple Upgrade its primary hardware subscription and leasing programme in the US.
While the service offers greater flexibility, experts say customers should understand the terms before signing up. Leasing differs from buying a device through instalments because ownership is not automatic. Customers wishing to keep the device after the lease ends must pay its remaining value, while damaged devices returned to Apple may incur additional charges depending on their condition.
Even so, the programme is expected to appeal to customers who prefer predictable monthly expenses over a large one-time payment. It also provides an easier path for users who want to stay up to date with Apple’s latest technology without repeatedly purchasing new devices at full price.
For now, Apple Upgrade is available only in the United States. However, industry observers believe the programme could eventually be expanded to other markets if it receives a positive response.
With Apple Upgrade, Apple is signalling a broader shift in the consumer electronics industry—from selling products to offering ongoing access to technology. As subscription models become increasingly common across digital services, the company is now applying the same approach to hardware, giving customers more flexibility while strengthening long-term loyalty to the Apple ecosystem.
