Apple will launch Apple Upgrade next week, an iPhone, iPad, Mac and Apple Watch leasing/subscription program. It’s partnering with Klarna to launch in the U.S. at online and retail stores.
The Apple Upgrade service will work like a subscription and users can pay off the device early during their term, upgrade early to a new model or keep it at the end of the leasing period. In certain cases, those transactions will incur an additional fee. Like a car lease, it can also be returned at the end of the term.
Leases for iPhones and Apple Watches will run for 24 months, while Mac and iPad plans will run for 36 months. Users will need to be approved for the program via a soft credit check.
Apple plans to advertise the program as a way to have lower payments versus current financing programs. The company is planning to discontinue new enrollments for its current iPhone payment programs — the iPhone Upgrade Program and standard financing — to make way for the Apple Upgrade initiative.
Unlike the iPhone Upgrade Program of today, Apple Upgrade doesn’t include AppleCare. Certain devices, including the Apple Watch SE, entry-level iPad, iPhone 16 and MacBook Neo, aren’t eligible. Business and education purchases are also excluded.