Apple Upgrade: 20 Key Tips Before Leasing an iPhone, iPad, or Mac
▼ Summary
– Apple Upgrade is a new U.S.-only leasing option from Apple in partnership with Klarna, replacing the iPhone Upgrade Program.
– Leased iPhones are unlocked but require a postpaid carrier plan at checkout; prepaid plans are not supported.
– At lease end, you do not own the device unless you pay the remaining balance; otherwise, you must return it.
– AppleCare+ is not included with the lease and must be purchased separately; Klarna charges for any device damage.
– Missing three consecutive payments results in lease termination and immediate full balance due, with potential credit score impact.
Apple has officially retired the iPhone Upgrade Program and replaced it with a new leasing option known as Apple Upgrade, launched in partnership with Klarna. While this program offers more affordable access to iPhones, iPads, Macs, and Apple Watches, there are several important details to consider before signing up. Below, we break down 20 key tips to help you navigate the leasing process.
U. S. Only – Apple Upgrade is currently limited to the United States, with no confirmed plans for international expansion.
Unlocked iPhones – Leased iPhones come unlocked, though you must select a carrier (AT&T, Verizon, or T-Mobile) at checkout. After purchase, you can switch carriers or add a second eSIM freely.
Postpaid Plans Required – You need an active postpaid plan with a supported carrier to qualify. Prepaid plans are not eligible for this leasing option.
Ownership Details – You do not own the device at the end of the lease unless you pay the remaining balance, which equals the original cost minus payments made. If you choose not to buy or upgrade, you must return the leased iPhone.
No Lockout – Despite earlier code in the iOS 27 beta suggesting app restrictions for missed payments, Apple Upgrade does not lock or limit your device’s functionality if you miss a payment.
Missed Payments – If you miss a monthly payment, it simply rolls into the next month’s bill. There are no late fees attached.
Three Strikes Rule – Missing three consecutive payments triggers automatic lease termination by Klarna. The full iPhone balance becomes due immediately, though Klarna subtracts the device’s value from what you owe when you return it. Failure to pay or return the device may lead to collections.
No Late Fees, But Credit Impact – While there are no fees for missed payments, the lease termination rules apply, and missing payments can negatively affect your credit score.
AppleCare+ Not Included – Unlike the old iPhone Upgrade Program, AppleCare+ is not bundled with Apple Upgrade. You must purchase it separately. iPhone AppleCare+ costs $9.99 to $13.99 per month, or you can opt for AppleCare One at $19.99 per month, which covers three devices.
Damage Charges – Klarna will bill you for any damage to a leased iPhone. Repairs must be paid for when returning the device. If you have AppleCare+, you only pay the service fee.
iPhone Upgrade Program Discontinued – Current members are not required to switch immediately, but they must transition to Apple Upgrade or another purchase option at their next upgrade.
Apple Card Monthly Installments Still Available – Apple Card holders can continue financing iPhones with zero interest through Apple Card Monthly Installments. This option gives you full ownership from the start.
Ineligible Products – Some devices cannot be leased through Apple Upgrade, including the iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, A16 iPad, and Studio Display.
No Education Pricing – Apple Upgrade cannot be combined with discounted education prices.
No Refurbished Devices – Refurbished Apple products are not eligible for leasing under this program.
Ending a Lease Early – You can terminate a lease early, but you must pay off the remaining balance and return the device.
Buying Out a Lease – Paying off your lease early is allowed with no penalty.
Soft Credit Check – Approval for a lease involves a soft credit check, so it won’t impact your credit score.
Trade-Ins – When starting a lease, you can trade in an old iPhone. The trade-in value is spread across your monthly payments rather than applied upfront. You cannot trade in a device when returning it for an upgrade.
Payment Restrictions – Klarna does not accept certain credit cards, including AMEX, Chase, and Capital One. However, the Apple Card and other cards can be used for payments.
For a deeper dive into pricing and additional details, check out our full article on Apple Upgrade.
(Source: MacRumors)
