Apple Launches Klarna Device Leasing Program in U.S.

• Apple is replacing its iPhone Upgrade Program and iPhone Payments with a new leasing plan called Apple Upgrade, backed by Klarna.
• The program covers iPhone, Apple Watch, Mac, and iPad, with terms ranging from 24 to 36 months depending on the device.
• Apple Card users will earn 3% Daily Cash on lease payments, and enrollments are expected to begin around late July 2026.

Apple is shaking up its device financing strategy with the launch of Apple Upgrade, a new leasing program in partnership with Klarna. The program, set to roll out in the U.S. around late July 2026, will replace the existing iPhone Upgrade Program and iPhone Payments, offering customers the flexibility to upgrade, buy, or return devices at the end of the lease term.

Unlike the previous installment plans, Apple Upgrade allows customers to lease a range of products, including iPhone, Apple Watch, Mac, and iPad, with lease terms that vary by device category—typically 24 months for iPhones and up to 36 months for Macs and iPads. The program excludes some lower-end models at launch, though Apple has not specified which ones.

“This is a strategic shift from ownership-oriented financing to a true leasing model,” said a person familiar with the matter. “It lowers the monthly barrier for consumers and encourages more frequent upgrades, which benefits Apple’s ecosystem.”

Apple Card users can earn 3% Daily Cash on their lease payments, a perk that wasn’t available under the old iPhone Upgrade Program. Klarna, the Swedish fintech known for buy-now-pay-later services, will provide the financing, marking a deepening partnership between the two companies.

The move comes as consumer finance trends increasingly favor subscription and lease models over outright ownership, especially for high-ticket electronics. By partnering with Klarna, Apple taps into a growing demand for flexible payment options, while Klarna gains a high-profile entry into device leasing.

Analysts see the program as a way for Apple to sustain hardware demand amid rising device prices and a maturing smartphone market. “It’s about smoothing out the revenue curve and locking in recurring payments,” said one analyst. “But consumers should watch out for long-term costs—frequent upgrades can add up.”

Apple declined to comment beyond the announcement, and Klarna did not respond to requests for additional details. The program is expected to be available through Apple Stores and online, with retail partners playing a key role in the rollout.

Correction: An earlier version of this article stated that the program would begin in June 2026. Apple has since confirmed a late July 2026 timeline.