Apple has launched an Upgrade programme allowing customers to lease selected iPhones, iPads, Macs and Apple Watches for a low monthly fee, with Apple pledging that total payments over a one- to three-year contract will never exceed the device's full retail price. The scheme, run through the buy-now-pay-later firm Klarna, is essentially a loan, meaning users need to keep up with monthly payments or risk losing the device and facing the outstanding balance in full.

At the end of the lease term, customers can buy the device outright by paying the remaining balance (for example, an extra $303.24 after paying $695.76 to lease a $999 iPhone Air over two years), return it and end the contract, or roll straight into a new device on a fresh monthly plan. Apple says there are no late fees or interest, but Klarna has confirmed that missing three consecutive payments will terminate the agreement and require the full outstanding amount to be paid, with unpaid debt potentially passed to collections. Apple has also denied claims that missed payments could trigger a "Restricted Mode" locking the device.