Summary
Apple has officially introduced Apple Upgrade, a new leasing program that allows customers to obtain Apple devices through monthly payments.
The new service launches in the United States and replaces the iPhone Upgrade Program for new customers. Developed in partnership with Klarna, Apple Upgrade covers iPhone, iPad, Mac and Apple Watch.
How Apple Upgrade works
Customers pay a fixed monthly fee throughout the lease period. At the end of the agreement they can return the device, upgrade to a newer model or pay the remaining balance to keep it.
Lease terms run up to 24 months for iPhone and Apple Watch, and up to 36 months for Mac and iPad.
What’s different
Unlike the previous iPhone Upgrade Program, AppleCare+ is no longer included. Applicants also go through a soft credit check performed by Klarna.
Customers can reduce their monthly payments by trading in an eligible device, while Apple Card users receive 3% cashback.
No restricted mode for missed payments
Apple has confirmed that leased devices will not be remotely restricted because of missed payments. However, after three consecutive missed payments, Klarna may terminate the agreement and request the remaining balance.
Availability
Apple Upgrade is currently available only in the United States through Apple Stores, the Apple Store app and Apple’s online store.
What we think
Apple is shifting toward a service-based model that makes regular device upgrades easier while reducing the upfront cost for customers.
