Apple Upgrade Explained: How Apple’s New Subscription Program Works

Source: Apple.com

Apple has a new way to sell you a MacBook Air you cannot currently buy outright.

Launched in July 2026, Apple Upgrade is the first-ever way to lease Apple products, iPhone, iPad, Mac, or Apple Watch, with low monthly payments. At the end of your lease, you return the device and upgrade to a new one. You never own it unless you choose to buy it out.

It is part leasing program, part subscription, and it arrives at a very convenient moment for Apple, right when its hardware prices have risen sharply and the MacBook Air has a weeks-long shipping delay.

What is Apple Upgrade and How Does It Work?

Apple Upgrade is a device leasing program available in the US. Leases are provided by Klarna, subject to eligibility and credit approval.

The structure is straightforward:

1. Choose a product and lease term
2. Make fixed monthly payments
3. Return the device at the end of the term
4. Upgrade to something new, no upgrade fee if you wait until the lease ends

You can choose a 12 or 24-month lease for iPhone and Apple Watch, or a 24 or 36-month lease for iPad and Mac.

You do not own the device. You are renting it on a fixed schedule. If you want to keep it, you pay the remaining purchase option fee, which equals the full retail price minus what you have already paid.

What Devices Are Available Through Apple Upgrade?

Apple Upgrade includes all models of iPhone (except iPhone 16), MacBook Air, MacBook Pro, iMac, Mac Studio, iPad Pro, iPad Air, iPad mini, Apple Watch Ultra, and Apple Watch Series 11.

Current monthly lease rates from Apple:

All prices exclude taxes and any trade-in credit. MacBook Air and Mac leases run 24 or 36 months only.

How Does the Apple Subscription Program Compare to Buying Outright?

If you return your device in good working condition, you will not pay more than the full price of the device. So technically, leasing for the full-term costs roughly the same as buying, except you give the device back at the end.

The real value is in cash flow. Instead of paying $1,299 upfront for a MacBook Air, you pay $34.99 a month for 36 months. For buyers squeezed by Apple’s recent price increases, that is a real difference in day-to-day affordability.

The trade-off is upfront; you build no equity in the device. Return it, and the payments are gone. Keep it, and you pay the remaining buyout fee on top.

What are the Fees and Conditions to Know?

A few things that matter before enrolling:

• The application involves a soft credit check that will not impact your credit score
• No down payment is accepted, monthly payments only.
• You can trade in an eligible device when you first enroll to lower your monthly payments, but trade-in credit only applies to the initial lease term.
• AppleCare coverage is not included, it is billed separately.
• If you terminate your lease early, you pay up to the remaining monthly payments owed.
• If you do nothing at the end of your term, the lease extends month-to-month for up to six months, after which Klarna charges you the full purchase option fee.
• AMEX, UnionPay, Chase, and Capital One cards are not accepted through Klarna.
• For iPhone leases specifically, you must connect to AT&T, T-Mobile, or Verizon when enrolling.

The damage fee is the biggest practical risk. If the device is not returned in good working condition, Klarna charges a one-time damage fee. Adding AppleCare significantly reduces that exposure.

Is Apple Upgrade Worth It?

For some buyers, yes. For others, no. Here is a clean split.

Apple Upgrade makes sense if:

• You upgrade your devices every 2–3 years anyway
• You prefer lower monthly costs over a large upfront payment
• You want the flexibility to upgrade without selling your old device
• You are considering a MacBook Air and cannot currently get one in stock

Apple Upgrade may not make sense if:

• You keep devices for 4+ years, you will pay full price and give it back
• You want to own your hardware outright
• You use Chase, Capital One, AMEX, or UnionPay cards
• You live outside the US, Apple Upgrade is only available to US residents, excluding US territories.

FAQs: Apple Upgrade

What is Apple Upgrade?
Apple Upgrade is the first-ever way to lease Apple products with low monthly payments. At the end of your lease, you return the device and can upgrade to something new. Leases are provided by Klarna.

Does Apple Upgrade affect your credit score?
No. The application involves a soft credit check that will not impact your credit score.

Can you buy the device at the end of the lease?
Yes. You can pay the purchase option fee, the full price of the device at lease signing minus the sum of lease payments already made, to own it outright through the Klarna app.

Is AppleCare included in Apple Upgrade?
No. AppleCare coverage is not included with your Apple Upgrade lease and is billed separately by Apple. It is worth adding, damage fees at return can be significant without it.

What replaced the iPhone Upgrade Program?
The iPhone Upgrade Program is coming to an end. Apple Upgrade is its replacement, expanding the leasing model to Mac, iPad, and Apple Watch alongside iPhone.

The Apple subscription program is not a surprise in the current climate. Prices have risen, hardware is harder to get, and monthly payments soften both problems. Whether it is a good deal depends entirely on how long you keep your devices, and whether you are comfortable never quite owning them.