Buying a new iPhone could soon require lower monthly payments, but Apple may remove one of the biggest benefits attached to its existing upgrade plan.
The company is reportedly preparing to launch Apple Upgrade while ending new enrollments in its current financing programs.
TL;DR
- Apple Upgrade is reportedly launching in the U.S. on July 28.
- The leasing program will cover most iPhones, Macs, iPads, and Apple Watches.
- Customers could switch devices early, pay them off, or keep them after the lease ends.
- Monthly payments may be lower, but AppleCare will not be included.
Apple Upgrade Could Replace Apple’s Current iPhone Payment Plans
Apple is reportedly preparing to discontinue new enrollments in the iPhone Upgrade Program and its standard iPhone financing option as it introduces Apple Upgrade.
The current iPhone Upgrade Program is marketed as an easy way to move to a new iPhone. Customers make monthly payments through Citizens One with 0% APR financing and can upgrade after 12 months. AppleCare coverage is also included.
Apple separately offers Apple iPhone Payments, another Citizens One-backed option that spreads the cost of an iPhone across 24 months without providing a built-in annual upgrade.
Apple Upgrade would replace these programs with a broader device leasing model supported by Klarna. It is expected to become available through Apple’s physical retail stores and online channels in the United States.
Apple Upgrade Offers Lower Payments And More Device Flexibility
The new program will reportedly operate like a subscription, giving customers more flexibility over what happens during and after the leasing period.
Users may be able to pay off a device early, switch to a newer model before the term ends, or retain the device once the lease concludes. Apple also reportedly plans to market the program around lower monthly payments compared with its existing financing options.
Unlike the iPhone-focused programs it is replacing, Apple Upgrade is expected to support most iPhone, Mac, iPad, and Apple Watch models. However, certain products may be excluded, including the Apple Watch SE, entry-level iPad, iPhone 16, and MacBook Neo.
Business and education purchases will reportedly be ineligible as well.
Topics For More Insight
Lower Apple Upgrade Payments Come Without AppleCare
The most significant compromise is that Apple Upgrade will not include AppleCare, separating it from the current iPhone Upgrade Program.
That means customers attracted by lower monthly costs may need to purchase device protection separately, potentially narrowing the program’s overall savings.
It also remains unclear how Apple will handle customers already enrolled in its existing payment programs. More details are expected when Apple Upgrade reportedly launches on July 28.
The program arrives as Apple has increased prices across products such as iPads and MacBooks while keeping iPhone prices unchanged. By expanding financing beyond smartphones, Apple could make more of its hardware accessible through smaller recurring payments while encouraging customers to replace devices more frequently.
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