Apple Partners With Klarna to Launch ‘Apple Upgrade’ Device Leasing in US

Apple is overhauling its consumer hardware financing strategy, partnering with fintech provider Klarna to introduce a comprehensive leasing service called Apple Upgrade across the United States. The initiative marks a strategic transition away from traditional installment payment plans toward a hardware-as-a-service structure across major product lines.

Under the new program, shoppers in the U.S. can lease eligible devices—including the iPhone, iPad, Mac, and Apple Watch—through Apple’s online platform and physical store locations. The arrangement features tiered contractual durations: 12- and 24-month terms for the iPhone and Apple Watch, along with 24- and 36-month periods for the Mac and iPad.

Monthly entry prices are set at $11.99 for the Apple Watch and iPad, $17.99 for the iPhone, and $24.99 for the Mac. Customers looking to reduce their monthly payments can utilize Apple Trade-In, applying the credit from their current hardware directly to the active lease term. When the contract expires, participants can opt to upgrade to the newest model, purchase the leased item, or return it.

While Klarna is best known for short-term Buy Now, Pay Later financing, Apple Upgrade operates strictly as an equipment lease rather than a conventional loan. Point-of-sale financing has gained significant momentum in recent years; according to Gallup survey data, approximately 51% of American consumers have utilized installment financing for online retail transactions.

To make room for the new offering, Apple is discontinuing both the iPhone Upgrade Program and iPhone Payments. Both legacy options previously provided zero-interest 24-month installment loans, with the iPhone Upgrade Program incorporating AppleCare+ coverage and device trade-in options after 12 monthly payments.

Market reaction following the announcement saw Apple shares rise 1.17% to $336.91, while Klarna Group PLC jumped 6.51% to $18.49.