Apple just gave you a new way to own an iPhone, iPad, Mac, or Apple Watch without buying it outright. The newly launched Apple Upgrade program allows you to lease Apple hardware through Klarna instead of paying full price upfront. I’ll admit that the monthly numbers genuinely look tempting.
I went through Apple’s own published rates device by device to figure out where this program actually saves you money, and where it’s merely a slower way to pay full price for something you’ll never own.
Who qualifies for Apple Upgrade?
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Apple Upgrade relies on Klarna as the lease provider. Applying for a device only triggers a soft credit check. To apply, you need to be 18 or older, a US resident, verified by SMS, and carrying an eligible credit/debit card, along with your Social Security number.
As part of the program, iPhones and Apple Watches are leased over 12 or 24 months, while iPads and Macs extend to 24 or 36 months.
Eligibility covers most current models, except for the iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, the base iPad, and Studio Display.
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iPhones also require an active AT&T, T-Mobile, or Verizon plan, though the phone itself ships unlocked. AppleCare+ isn’t bundled anymore; it’s billed separately.
What happens when your lease ends?
Once the lease ends, you have three options based on what you want to do with the device: return and upgrade, pay to own, or walk away empty-handed.
Apple gives you up to six months after your term ends to decide. If you do nothing, Klarna automatically charges that purchase-option fee on your behalf.
| Option | Pros | Cons | Best For… |
| Return & Upgrade | Latest features every 1–2 years | Infinite monthly bills | Tech enthusiasts who want the newest model annually. |
| No hassle selling old tech | Build zero device equity and loss on the trade-in value | ||
| Fresh battery life | Miss out on carrier deals | ||
| Pay to Own | Monthly bills hit $0 | Highest total cash spent | People who plan to keep their device for 4+ years. |
| You keep a valuable asset | Paying a premium to buy out | ||
| Freedom to sell/trade later | |||
| Walk Away | Clean break from debt | Spent thousands for a rental | Someone switching away from Apple ecosystems entirely. |
| No future financial ties | Left with no phone/computer | ||
| No further obligations |
iPhone: Does leasing actually save you money?
Let’s consider the iPhone 17e at $599 on a lease-and-return basis. If you lease it for 24 months and pay $17.99 a month, you’ll hand over roughly $432 total before sending the phone back. Essentially, you never own anything; you just rented it for two years.
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If you decide to keep the phone instead, you’ll pay the difference, roughly $165 to $170 more on the 17e. Add that to your lease payments, and the total lands around $599, exactly what you’d have paid on day one had you purchased the iPhone outright.
To me, that’s where Apple Upgrade’s real appeal lies. It provides the flexibility to spread out the cost, keeping your cash available for other priorities while still allowing you to own the device later. However, the program makes more sense for expensive Pro models than entry-level iPhones, where the upfront cost is easier to justify.
iPad: Worth the monthly commitment?
Given that buyers often keep their iPads longer than iPhones, Apple offers longer tenure options for leasing: 24 or 36 months. If you’re a student or an entry-level professional looking for an iPad for studies or daily tasks, leasing makes good sense.
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For instance, you’ll save the upfront cost of $599 (for the iPad mini) or $749 (for the iPad Air), paying monthly fees of $11.99 or $15.99 over 36 months. Depending on your needs, you can either pay the difference to keep it or upgrade to the latest model without any additional fees.
While there are no discounts here, the ease of usage is a significant draw.
Mac: A better deal or just a bigger bill?
If you don’t have that kind of money upfront but still want to upgrade from an old Intel-based MacBook or even an M1- or M2-powered MacBook Air, the Apple Upgrade program breaks that upfront cost into monthly installments starting at just $24.99 over 36 months.
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However, there’s another side to consider. The M5 family of chips offers enough performance headroom to keep your Mac relevant for the next four to five years, which is why I expect these MacBooks to hold their resale value exceptionally well.
For that reason, I would extend the payments over the full 36 months and then pay the remaining amount to keep the MacBook. Unlike an iPhone, a MacBook is something I’d comfortably hold onto for four to five years, opting for long-term ownership over frequent upgrades.
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Apple Watch: The one category where leasing might win
While leasing may initially seem appealing, it might be more logical to purchase the Apple Watch outright.
The upgrade trajectory for the Apple Watch hasn’t taken off recently. For most users, the Series 10 will serve the same purpose as the Series 11. With a new release around the corner, outgoing models can often be found at a discount.
Take my experience, for instance: I’ve used the Watch Series 8 for three years now, and I still don’t feel the need to upgrade. The upfront cost of an Apple Watch isn’t as high as that of a Pro iPhone or MacBook Air, enhancing the appeal of buying rather than leasing.
For more detailed insights on the Apple Upgrade program, check out the full article Here.
Image Credit: www.digitaltrends.com
