The Apple Upgrade program is here, giving consumers ways to lease even more products. Here's how much you'll pay to lease your hardware, and what happens when the lease term has ended.
On July 28, Apple launched the Apple Upgrade program to replace the iPhone Upgrade Program. One that also enables consumers to buy more than just iPhones.
Under the new program, consumers can elect to lease a Mac, an iPad, or an Apple Watch, as well as an iPhone. Just as under the iPhone Upgrade Program, they can choose to upgrade to new hardware early in the leasing period, starting again from new.
The plans last for either 12 months or 24 months for an iPhone or Apple Watch. Terms for iPad or Mac sit at 24 months or 36 months.
At the end of the plan period, users can then exit the program by returning their products. They can also return and upgrade to a new device, or pay a fee to buy out the device.
The cost per month depends on the model of the device as well as the length of the term. The trade-in credit also affects the costs associated with the plan.
The monthly costs below are based on the base specification option of each, without trade-ins.
The monthly cost of Apple Upgrade seems good to consumers compared to the 0% financing options Apple also lists for its products. That's partly because installment financing is very different from a lease.
For a start, you are paying to own the product under financing. You are paying to possess under Apple Upgrades, but not own it during the plan period.
The difference is because you can upgrade the device mid-plan under Apple Upgrades without penalty, so long as you meet its requirements.
You do have the opportunity to own your product at the end of the period. However, you will have to pay the remaining cost of the product that the monthly fees do not cover.
As an example, the 24 months of $17.99 payments for an iPhone 17e will cover $431.76 of the $599 purchase cost. There's still $167.24 left to pay.
Consumers don't have to pay this, though. They can return the iPhone or their device back to Apple at the end of term to avoid any further payments.
Be aware that, if you don't return the device you leased back to Apple, nor do you pay for the device, you'll end up paying a monthly charge for the hardware. That charge can end up being higher than the monthly fee during the plan itself.
After six months, you may also be charged for the remaining cost of the device.
