Apple’s rumored ‘Upgrade’ program brings lease-to-own pricing for iPhones, Macs, and iPads
Apple is reportedly preparing to launch a lease-style purchasing scheme called "Apple Upgrade" on 28 July, according to Bloomberg's Mark Gurman, as component and RAM shortages push device prices higher. The programme would work like a car lease, letting customers upgrade early, keep the device, or return it at the end of the term, with the financial technology firm Klarna backing it and a soft credit check required to sign up. It would replace the existing iPhone Upgrade Program and standard financing, marking a significant shift in how Apple sells its most popular products.
Apple Upgrade would offer 24-month leases for iPhones and Apple Watches, and 36-month leases for iPads and Macs, covering most current devices. Budget models such as the base iPad, iPhone 16, Apple Watch SE and MacBook Neo would reportedly be excluded, and unlike the current scheme, it would not include an AppleCare subscription, which is itself becoming more expensive. The move follows a round of price rises across most of Apple's range last month, and comes ahead of the expected iPhone 18 Pro launch later this year, which could push pricing even higher.
- Apple reportedly launching lease-to-own "Apple Upgrade" scheme on 28 July
- Klarna to back financing; 24-month iPhone/Watch and 36-month iPad/Mac leases
- Cheaper models excluded; no AppleCare included, unlike current programme
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters see real consumer benefit in a lease-to-own model, especially as rising component and memory costs push device prices upward: it lowers the barrier to owning a capable phone, Mac or iPad by spreading cost into manageable instalments, mirrors a financing approach many people already understand from car leasing, and offers flexibility to upgrade sooner, keep the device, or hand it back, which can suit those who dislike being locked into old hardware. It may also encourage more devices to be returned and refurbished or recycled rather than left in drawers, appealing to buyers who value predictable budgeting and easier access to the latest technology.
The case against
Sceptics worry this formalises a subscription-style relationship with hardware that, over time, can cost considerably more than buying outright and owning a device for several years, since lease payments often continue indefinitely as customers roll from one lease into the next. They argue such programmes can nudge financially stretched customers toward recurring commitments they might not fully weigh against a simple upfront purchase or existing carrier instalment plans, and that framing an expensive gadget as an easy monthly payment obscures its true lifetime cost, benefiting the company's revenue predictability more than it benefits the average buyer's finances.