As smartphone prices continue to skyrocket, Apple has launched a new way for customers to get their hands on the latest iPhone for as little as $18 per month.
On July 28, Apple announced Apple Upgrade, a new leasing program for iPhones, Apple Watches, iPads and Macs in collaboration with buy-now-pay-later platform Klarna. The program offers 12-, 24- and 36-month leasing options.
The launch of Apple Upgrade also marks the discontinuation of the iPhone Upgrade Program and iPhone Payments in the United States, according to an Apple news release. Once eligible, customers enrolled in the upgrade program will have the option of leasing a device through Apple Upgrade.
Here’s what to know about the new program.
How Does Apple Upgrade Work?
Apple Upgrade provides customers with a cheaper way to have access to products through a monthly lease.
At the end of a customer’s lease term, the customer can upgrade the device to the latest generation, purchase it with a one-time payment, or return it and exit the program, according to an Apple news release.
What iPhones Are Available with Apple Upgrade?
The iPhone 17, iPhone 17e, iPhone 17 Pro and iPhone Air are available with Apple Upgrade, as of July 28.
What Are the Monthly Lease Costs Through Apple Upgrade?
As of July 28, here’s a breakdown of the monthly costs for each product available through Apple Upgrade:
iPhone
- iPhone 17e: $18 per month for 24 months
- iPhone 17: $23 per month for 24 months
- iPhone Air: $29 per month for 24 months
- iPhone 17 Pro: $32 per month for 24 months
iPad
- iPad mini: $12 per month for 36 months
- iPad Air: $16 per month for 36 months
- iPad Pro: $25 per month for 36 months
Apple Watch
- Apple Watch Series 11: $12 per month for 24 months
- Apple Watch Ultra 3: $25 per month for 24 months
Mac
- MacBook Air: $25 per month for 36 months
- MacBook Pro: $39 per month for 36 months
How to Apply for Apple Upgrade
Customers must apply to the Apple Upgrade program, either online or in person.
To get started, customers must select a preferred product (including model, color and storage space) and lease term (12 or 24 months for iPhones and Apple Watches, and 24 or 36 months for Macs and iPads), according to an Apple news release. Customers then choose a carrier before submitting an application.
All applicants are subject to a soft credit inquiry, which does not impact credit scores. Once approved, customers can complete their transaction as normal.
Who Is Eligible for Apple Upgrade?
According to an Apple news release, applicants must meet the following criteria to be eligible for Apple Upgrade:
- U.S. resident
- 18 years old or older
- Valid Social Security number or individual taxpayer identification number
- Own an accepted credit or debit card
- Have an Apple Account in good standing
- Have a Klarna account
- Be able to receive security verification codes via text message
How Is Apple Upgrade Different from Financing Plans Through Mobile Carriers?
The key difference between Apple Upgrade and financing plans through mobile carriers is the outcome. When enrolled in a financing plan from a mobile carrier, such as T-Mobile or AT&T, the customer owns the device once the phone is paid off.
With Apple Upgrade, at the end of a lease term, the customer can upgrade the device to the latest generation, purchase it with a one-time payment, or return it and exit the program.
Greta Cross is a national trending reporter at USA TODAY. This article includes reporting via Reuters Connect.
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