Apple’s new Upgrade program is here. Just be sure to read the fine print

Exactly as predicted last week, Apple has today launched a new program called Apple Upgrade. This allows you to lease an iPhone, iPad, Mac, or Apple Watch rather than buying it outright.

The payment plan, which is available in the U.S. only, is somewhat reminiscent of the iPhone Upgrade Program, which ran for more than a decade but is now officially coming to an end. However, aside from including three other classes of devices as well as the iPhone, Apple Upgrade has some significant differences in the terms and conditions, and as far as we can see in most overlapping cases, will result in you paying slightly more for the equivalent service.

Here’s how it works.

First, you pick a device. Not all models are included in the program. Most notably, the cheapest in each category (iPhone 16, entry-level iPad, MacBook Neo, Mac mini, and Apple Watch SE) are excluded. Apple is clearly steering Upgrade customers towards its mid-market and premium brands.

Next, you select the length of your lease term. For iPhones and Apple Watches, the options are 12 and 24 months; for iPads and Macs, you can select either 24 or 36 months. The monthly payment will vary depending on which term you pick. A 256GB iPhone 17, for example, will cost $32.99 per month across 12 months, or $22.99 per month across 24. There’s no option to lower these costs with a down payment, though you are able to trade in an older device to bring down the monthly payments.

Note that the quoted costs don’t include AppleCare+, which was included by default in the iPhone Upgrade Program but is now a separate bill. In the case of the iPhone 17, this will set you back an additional $11.99 per month or $19.99 for AppleCare One that covers up to three devices.

Assuming you pass the soft credit check required to enroll in the program, you’ll receive the device right away, which is good news if you haven’t got the money right now and don’t want to wait. But you’ll need to keep up those payments, which will be collected by Klarna rather than Apple, or suffer the consequences. Aside from the traditional methods of recovering a debt, it’s believed (based on references in iOS 27 beta code) that the provider will have the option to limit the functionality of devices if the owner misses one or more payments, but Apple’s site or footnotes make no mention of such a feature.

If you want to leave the contract early… well, technically you can, but the termination fee will be equal to the sum of all the remaining monthly payments, so you won’t be gaining anything. The only exception to this is the 14-day cooling-off period at the start of the contract. As with standard purchases through Apple, you have two weeks to return the device if you change your mind, in which case the lease will be cancelled.

Now here’s the important part. Once you get to the end of the lease, having successfully negotiated all the monthly payments, you don’t own the device. It’s a leasing service, remember, not financing. But you have a few options at this point.

You can simply return it, and that’ll be the end of the matter. Like a car lease, you may have to pay a further fee if it’s damaged, but other than that you won’t be on the hook for any more money. Of course, it may feel like you’ve paid several hundred dollars and have nothing to show for it, but as I said, you’ve essentially been renting a piece of hardware. Hopefully, by this point you’ve got some value out of the device.

But if you want to keep going, there are two more options. You can buy the device outright by paying its original list price minus the payments you’ve made so far. Once that’s done, it’s yours. Or, as the name of the program hints, you can upgrade to a newer model. In this case, you send back the device (hopefully it’s not damaged; if it is, you’ll be liable for a fee) and select something new to replace it. Then you select a new lease term, start your monthly payments, and the whole arrangement begins anew. You can also choose to upgrade earlier than the end of your term, but the fee for that is the same as breaking your lease: the remainder of your payments.

If that all sounds like a big decision, don’t worry: You won’t need to make it right away. Apple will send you a notification when you’re eligible to make an upgrade without paying a fee, and from that point you have six months to decide. You’ll need to carry on making monthly payments, of course, so indecisiveness may prove costly. If you’ve still not made up your mind after six months, Klarna will decide for you and bill you for the remainder of the purchase price.

For some customers, this could be a smart way to pay for their Apple products. But we strongly recommend caution, for various reasons. Remember that the termination fees mean you’re locked in, as effectively as if you went to the Apple Store and bought the device. So, if a new model comes out 15 days after you sign the lease, you’re out of luck. If you end up purchasing outright, you’ll pay Apple’s list price, but it’s nearly always possible to buy Apple products for slightly less than MSRP if you shop around. And the looming threat of damage fees means it’s really important that you look after the device with a case and a screen protector.

In other words, please make sure this is the right option for you, and above all read the fine print.