Apple Launches Klarna Leasing for iPhones, Macs and iPads in US

Apple has launched Apple Upgrade in the United States today, 28 July, introducing a Klarna-provided leasing programme for selected iPhones, Apple Watches, Macs and iPads. The service is available through the US Apple Store online, the Apple Store app and physical Apple Store locations.

It is a significant change in how Apple sells its hardware, shifting more customers towards recurring monthly payments with the option to hand back, upgrade or eventually buy the device. But British buyers should not expect to sign up today: Apple Upgrade is a US-only launch, and Apple has not confirmed plans to bring it to the UK.

“At Apple, we put the customer at the center of everything we do,” said Karen Rasmussen, Apple’s Vice President of the Apple Store online, “and we're thrilled that Apple Upgrade offers our customers, both online and in-store, a more flexible way to pay for the products they love.”

Lease a device, then upgrade, return or buy it

Apple Upgrade offers 12- and 24-month terms for iPhone and Apple Watch. Mac and iPad leases run for 24 or 36 months. Once a term ends, customers can move to the latest generation of their device, make a one-off payment to purchase the model they have, or return it and leave the programme.

Klarna will manage the leases through its app, where users can check payment schedules and remaining instalments. Apple says customers can reduce their monthly payment at enrolment by trading in an existing device through Apple Trade In.

There is no security deposit, and Klarna will not levy late fees. However, it will terminate a lease after three months of missed payments. Ending an agreement early is possible, but Apple warns that doing so may bring “substantial fees”. Returned devices will also be assessed for damage, while a lost or stolen iPhone could lead to charges.

AppleCare+ is optional rather than included in the monthly lease price, and customers can instead choose AppleCare One. That distinction matters: the headline monthly figure is not necessarily the full ongoing cost for someone who wants hardware cover.

US prices start at $17.99 a month

In the US, iPhone leases start at $17.99 per month for the iPhone 17e. Apple Watch leasing starts at $11.99 per month for Apple Watch Series 11, while Mac leases begin at $24.99 per month for MacBook Air and iPad leases start at $15.99 per month for iPad mini.

Apple’s examples include an iPhone 17 Pro with 256GB of storage, priced at $1,099 outright, at $31.99 per month for 24 months or $45.99 for 12 months. An iPad Pro with 256GB, listed at $1,199, starts at $24.99 per month over 36 months. A MacBook Pro with 16GB of RAM and 1TB of storage, priced at $1,999, is listed at $38.99 over 36 months or $53.99 over 24 months.

Apple says Klarna is not charging a fee for the leasing programme. In its example, an iPhone priced at $1,099 can be leased and later purchased for $1,099, with no additional cost beyond tax. Applicants first face a soft credit check, which Apple says does not affect their credit score.

There are notable restrictions. US iPhone lessees must choose an AT&T, Verizon or T-Mobile plan, with prepaid plans and smaller virtual networks such as Mint Mobile and Visible excluded. The iPhones are unlocked, so customers can switch carrier later. Apple Watch SE, the base iPad, iPhone 16 and MacBook Neo are not included, and the scheme is unavailable for business or education purchases.

Apple retires its old US financing routes

The launch also marks the end of Apple’s existing in-house US financing and instalment options, including the iPhone Upgrade Program and iPhone Payments. Apple will stop taking new iPhone Upgrade Program sign-ups today, although Bloomberg News reports that existing members can remain enrolled “for the time being”.

Bloomberg first reported the planned programme on 21 July, citing people familiar with the matter. The publication described the change as one of Apple’s biggest sales-model shifts in years.

For Apple, the timing is telling. In June, the company increased Mac and iPad prices amid a global memory and storage shortage, while leaving iPhone, Apple Watch and AirPods prices unchanged at that point. Apple said it had reached a point where it needed to start raising prices on a number of products, including iPad and Mac.

Why UK buyers should still pay attention

The UK has already felt those increases. On 25 June, Apple raised prices across much of its British Mac and iPad range by between £100 and £1,300 for the same hardware. The M3 Ultra Mac Studio saw the largest rise, up £1,300, while the MacBook Neo moved from £599 to £699 only months after launch.

Apple’s previous iPhone Upgrade Program has already ended in the UK. On 30 January, Apple introduced a Flexible Finance Account with Belfast-based consumer finance company Creation, following the apparent wind-down of its Barclays partnership.

Any future UK version of Apple Upgrade would arrive in a changed regulatory environment. The Financial Conduct Authority began regulating deferred payment credit on 15 July, bringing buy now, pay later providers including Klarna into a broader supervisory regime. Affordability checks now apply, and unresolved complaints can be taken to the Financial Ombudsman Service.

That makes Apple Upgrade worth watching from this side of the Atlantic. It could offer a more structured route to frequent upgrades if it reaches Britain, but leasing is not the same as owning: buyers need to consider the end-of-term decision, optional insurance and the potential cost of damage or an early return. For now, the programme remains an American answer to rising device prices.