How Apple Upgrade Plan makes buying iPhone, Mac and iPad easier
Apple has replaced its old iPhone Upgrade Program and iPhone Payments service in the United States with the new Apple Upgrade Plan. The programme allows customers to lease eligible Apple devices through flexible monthly instalments.
The company said the service has been launched in partnership with financial services provider Klarna. Customers can apply through Apple’s website, the Apple Store app and Apple retail stores.
Klarna will carry out a soft credit check to review a customer’s eligibility. Apple said this process will not negatively affect the customer’s credit score.
The Apple Upgrade Plan covers most new iPhone, Mac, iPad and Apple Watch models. However, some devices are not included, including the iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Air, base model iPad (A16) and Studio Display.
One major change in the new programme is that AppleCare+ is no longer included in the monthly payment. Customers who want AppleCare+ will need to purchase it separately.
Apple also said customers who pay their lease instalments using the Apple Card will receive 3% Daily Cash back. This adds an extra benefit for Apple Card users.
Also read: Apple expected to launch iPhone 18 Pro in September with new features and camera upgrades
Monthly payments vary depending on the device and lease period. iPhone plans start from $17.99 per month for 12 or 24 months, while Apple Watch plans begin at $11.99 per month for the same duration.
Mac devices are available on 24- or 36-month leases starting from $24.99 per month. iPad leasing also starts from $11.99 per month with lease periods of 24 or 36 months.
At the end of the lease, customers can choose from three options. They can return the device and start a new lease with a newer model, pay the remaining amount to own the device permanently, or return the device and end the agreement.
Apple said that if a customer does not make a decision after the lease ends, the agreement will automatically continue on a monthly basis for up to six months. If the device is still not returned or purchased after that period, Apple will charge a final purchase fee.
The Apple Upgrade Plan gives customers more flexibility by lowering the upfront cost of buying expensive devices. However, users should carefully compare the total leasing cost with the cost of buying a device outright before choosing the plan.
