Apple launched a new "Upgrade" leasing program in the U.S. on July 28, 2026, for its primary hardware lines [1].

This shift represents a broader strategy to move customers toward a subscription-like model for physical hardware. By expanding leasing beyond the phone, Apple increases the likelihood that users will remain within its ecosystem across multiple device categories.

The program allows customers to lease an iPhone, iPad, Mac, or Apple Watch [2]. This new initiative replaces the previous iPhone Upgrade Program, expanding the leasing model to include the company's wider product portfolio [3].

To facilitate the financial structure of these leases, Apple is partnering with Klarna [1]. This partnership enables the flexible payment terms required to maintain a rotating cycle of hardware upgrades for the consumer [3].

Pricing for the new program starts at $17.99 per month for an iPhone [1]. The specific terms for iPads, Macs, and Apple Watches vary based on the model and configuration selected by the user [4].

Apple said the program was introduced to provide a leasing alternative and increase flexibility for its customers [2]. The move allows users to access the latest technology without the immediate burden of a full retail purchase price, a trend growing across the consumer electronics industry [5].

Customers who utilize the program can transition to newer models as they are released, provided they meet the terms of the leasing agreement [3]. This ensures a steady stream of pre-owned devices returning to Apple for refurbishment or recycling [4].

“Apple launched a new "Upgrade" leasing program in the U.S. on July 28, 2026”

The transition from a device-specific upgrade program to a comprehensive hardware leasing ecosystem suggests Apple is prioritizing recurring revenue over one-time hardware sales. By partnering with Klarna, Apple offloads the credit risk while locking users into a continuous upgrade cycle, effectively turning hardware into a service. This strategy may lower the barrier to entry for high-end Macs and iPads, potentially increasing the total number of active devices in the Apple ecosystem.