Apple Upgrade Program is now live in the United States, giving customers a new way to lease iPhone, Apple Watch, Mac and iPad through Klarna. The move shifts Apple buyers from a purchase-only path to monthly payments with a defined end-of-term choice.
Karen Rasmussen on flexibility
Karen Rasmussen, Apple’s vice president of the Apple Store online, said, "At Apple, we put the customer at the center of everything we do, and we’re thrilled that Apple Upgrade offers our customers, both online and in-store, a more flexible way to pay for the products they love."
Apple says the program is available through the Apple Store online, the Apple Store app and at Apple Store locations in the United States. Customers can apply within minutes online or in-store and receive quick approval from Klarna.
Apple devices and monthly pricing
Apple Upgrade offers 12- and 24-month leasing options for iPhone and Apple Watch. It offers 24- and 36-month leasing options for Mac and iPad. Pricing starts at $17.99 per month for iPhone, $11.99 per month for Apple Watch, $24.99 per month for Mac and $11.99 per month for iPad.
Customers can lower monthly lease payments by trading in a currently owned device through Apple Trade In when they first enroll. They can also earn 3 percent Daily Cash back when they make payments with Apple Card.
End of the lease term
At the end of the lease term, customers can upgrade to the latest generation, buy the device with a one-time payment or return it and exit the program. Customers can track billing schedules and remaining payments in the Klarna app, and they can add an AppleCare subscription for protection.
Apple also said eligible customers already enrolled in the iPhone Upgrade Program can move to Apple Upgrade, finance with Apple Card Monthly Installments, buy outright or choose carrier financing. The company will no longer offer the iPhone Upgrade Program and iPhone Payments in the United States, and the open question is which exact eligibility rules control entry into Apple Upgrade.
