Apple launches 'Upgrade' leasing program for iPhone, iPad, Mac, and Apple Watch

Apple has launched Apple Upgrade, as predicted, a new leasing service that replaces the decade-old iPhone Upgrade Program in the US. The new program covers eligible iPhone, iPad, Mac, and Apple Watch models, extending beyond the iPhone for the first time.

It also switches from installment financing to a leasing model. Customers complete a soft credit check before choosing an eligible device and lease term.

Lease terms vary by device. iPhone and Apple Watch models are available with 12- or 24-month leases, while Macs and iPads offer 24- or 36-month options.

Monthly lease prices start at $17.99 for iPhone, $11.99 for Apple Watch and iPad, and $24.99 for Mac. Customers can also lower their monthly payment by trading in an eligible device before starting a lease.

When the lease ends, users can upgrade to a newer device, buy the leased product with a one-time payment, or return it. Apple also allows eligible users to pay off their lease early, while payments and billing are managed through the Klarna app.

Unlike the old iPhone Upgrade Program, AppleCare+ is no longer included with the monthly payment. Customers who want AppleCare+ for accidental damage protection or extended coverage must add it separately when starting a lease.

Apple has also stopped accepting new enrollments for the iPhone Upgrade Program, which launched alongside the iPhone 6s in 2015. Existing members can continue using their current Citizens Bank agreement until they become eligible for another device.

When their current agreement ends, iPhone Upgrade Program members can move to Apple Upgrade or choose another payment option, including Apple Card Monthly Installments, carrier financing, or paying in full. Their existing AppleCare coverage will remain active until the original 24-month agreement expires.

Apple Upgrade is currently available only in the US, and Apple has not announced plans to expand it to other markets.