Apple Shifts to Leasing Model with New Klarna-Backed Program

The new program, which launched July 28, functions as a pure lease rather than a loan. Customers pay a monthly fee for a fixed term—12, 24, or 36 months depending on the hardware—without gaining equity in the device. At the end of the term, users must either upgrade, return the hardware, or pay an additional purchase fee to retain possession. Failure to take action results in an automatic conversion to a month-to-month arrangement, which may involve increased costs.

Eligibility hinges on a soft credit inquiry through Klarna, with monthly rates starting at $17.99 for iPhones and $11.99 for Apple Watches. While the program covers a wide array of current hardware, including the iPhone 17 series and M5 MacBooks, it excludes budget models and the Vision Pro. Notably, AppleCare is no longer bundled, requiring users to purchase separate protection plans. Existing members of the legacy iPhone Upgrade Program are unaffected by this rollout; their current agreements with Citizens One remain in place until completion, at which point they may transition to the new leasing structure or explore other financing options like Apple Card Monthly Installments.