Apple is preparing to launch a new iPhone upgrade program on July 28, with users leasing iPads, Macs, and Apple Watches from Klarna for 24 to 36 months.
Apple already provides consumers with ways to upgrade their devices while paying a monthly subscription. But it seems Apple is gearing up to introduce a new alternative to the iPhone Upgrade Program that covers more hardware.
Expected to launch on July 28, Apple Upgrade will be a leasing program backed by credit group Klarna. According to sources of Bloomberg, it will allow consumers to acquire not just iPhones, but select Macs, iPads, and Apple Watch models.
Initially launching in the United States at retail and online, Apple Upgrade will let users lease an iPhone or Apple Watch for 24 months. For Mac and iPad, plans will last 36 months.
Users will be able to pay a monthly subscription for their hardware, and can pay off the plan early if they want. They can also upgrade to a new model during the term, or if they reach the end, keep the device or return it.
Some of those actions may incur extra fees. Users will also need to be approved for the program with Klarna performing a soft credit check.
Some products also won't be part of the plan, including the Apple Watch SE, the base-level iPad, the iPhone 16, and the MacBook Neo. It also won't be available for business and education purchases either.
The new plan also will differ from the existing iPhone Upgrade Program as it won't include AppleCare.
While existing financing programs like the iPhone Upgrade Program will still continue, Apple is allegedly going to stop new enrolments in favor of the new Apple Upgrade plan.
Apple has previous form in working with Klarna for making payments flexible.
In October 2024, Klarna installments were added to Apple Pay for both online and in-app purchases. This included being able to arrange flexible payment options at the time of checking out.
After shutting down Apple Pay Later in 2024, Apple turned to third-party providers like Klarna more with a new Pay Later Option in the Wallet app. Rolled out in September 2025 across iOS 18 and iOS 26, users could select Klarna as an installment provider through the same process as adding a new card.
