Apple Launches Apple Upgrade Device Leasing Program in U.S.

On July 28, 2026, Apple Inc. launched Apple Upgrade, a device leasing program in the United States developed in partnership with Klarna. The program replaces the iPhone Upgrade Program and iPhone Payments, shifting the business model from loan-to-own installments to an explicit lease. Customers can lease iPhones, iPads, Macs, and Apple Watches for terms ranging from 12 to 36 months, with monthly payments starting at $11.99 for iPads and Watches, $17.99 for iPhones, and $24.99 for Macs.

Under the agreement, Klarna pays Apple the full hardware cost upfront and assumes all credit risk and collections, allowing Apple to record immediate sales. At the end of a term, users may return the device, upgrade to a newer model, or make a one-time payment to purchase the hardware. The launch follows price increases driven by a global memory chip shortage and aims to increase the frequency of device upgrades.

The program sparked controversy after beta code for iOS 27 suggested a Restricted Mode could lock devices following missed payments. Apple spokesperson Brian Bumbery denied these reports, stating no such limitations on functionality would be applied. However, Klarna will terminate leases after three consecutive missed payments and demand the full outstanding balance. Critics, including iFixit CEO Kyle Wiens, argued the move turns owners into renters and encourages unsustainable spending. Market reaction remained positive, with Apple's market capitalization reaching $5 trillion.