Apple has officially launched a new hardware leasing program called Apple Upgrade.

This new program, which is currently available only in the US, allows customers to lease new iPads, iPhones, Macs, and Apple Watches, with low monthly payments and flexible terms.

This program is backed by Klarna and also serves as a replacement for the existing iPhone Upgrade Program.

How Apple Upgrade Works

Unlike the iPhone Upgrade Program, Apple Upgrade is a true lease model. You will not own the device at the end of the term unless you pay a final purchase fee. The lease itself is actually through Klarna, and you will be able to use their app to view lease info and billing schedules.

You can choose 12- or 24-month leases for iPhone and Apple Watch, or 24- and 36-month leases for iPad and Mac.

Monthly payments vary by device, starting as low as $11.99 for Apple Watch and iPad, $17.99 for iPhone, and $24.99 for Mac. You can lower these payments further by trading in an eligible device when you enroll.

Another difference from the iPhone Upgrade program is that AppleCare is not included as part of the program. It is a separate purchase, and since you’ll be liable for damages when you trade your device back in, it’s definitely something to consider.

Excluded Devices

Apple’s more affordable products are ineligible for the Apple Upgrade program.

• iPad (A16)
• Apple Watch SE
• iPhone 16 and iPhone 16 Plus
• MacBook Neo
• Mac mini

The Apple Studio Display is also excluded from the program.

The Apple Vision Pro was not mentioned in the press release or on the Apple Upgrade site. Given that it’s not a frequently upgraded product, I think it’s safe to assume it’s excluded from the program, but Apple has not officially confirmed that.

Ending the Lease

At the end of the lease term, you have three options:
– Upgrade to a new device by entering a new lease
– Purchase the device outright by paying a purchase fee
– Simply return the device.

If you decide to cancel your lease and return the device before your term is up, you may incur “substantial” fees. It’s unclear from Apple’s press release what “substantial” is, but it certainly doesn’t sound pleasant.

Should You Lease Your Next iPad?

With the price of seemingly everything going up, including Apple products, with no relief in sight, a leasing program like this can look like a pretty tempting option. And for some users, it absolutely can be. If you’re someone who upgrades frequently because you always want to have the latest and greatest, then this is something to consider.

But payment programs that offer low monthly payments can cause people to ultimately spend way more than they need to. And since this is a lease, you likely won’t end up owning anything when the term completes, possibly causing you to enter another lease.

You really need to know what you’re getting into, so make sure to read the fine print.

For the most accurate and up-to-date details on Apple Upgrade, visit the links below.

Links: Apple Upgrade, Apple’s Press Release