Apple Launches Klarna-Backed Device Leasing Program

Apple has offered installment financing and annual upgrades through its iPhone Upgrade Program since 2015, while ending its in-house Apple Pay Later service in 2024 in favor of third-party lenders. Apple Upgrade broadens that monthly-payment model to Macs, iPads and Apple Watches. The shift gives Apple another way to support hardware demand and shorten replacement cycles as rising device prices make upfront purchases less accessible.

Apple launched Apple Upgrade in the United States on July 28, 2026, with Klarna providing the leases and soft credit checks that do not affect applicants’ credit scores. Customers can lease an iPhone or Apple Watch for 12 or 24 months, and a Mac or iPad for 24 or 36 months. Monthly payments start at $17.99 for iPhones, $11.99 for Watches and iPads, and $24.99 for Macs. At expiry, users may return, buy or upgrade the device.