Apple is preparing a new leasing program that could change how customers buy iPhone, Mac, iPad and Apple Watch.
Apple is preparing a new device leasing program called Apple Upgrade, allowing customers to pay monthly for iPhone, iPad, Mac and Apple Watch devices instead of paying the full price upfront. The program is expected to launch in the US on July 28 with financial backing from Klarna, giving customers options to upgrade early, keep the device or complete payments at the end of the lease period.
A new way to buy Apple devices
Apple Upgrade changes how customers pay for hardware. Instead of traditional ownership through financing, users would lease devices through monthly payments. iPhone and Apple Watch leases are expected to run for 24 months, while Mac and iPad leases would use 36-month terms. Customers could upgrade early, keep the device after completing payments or choose other options depending on the agreement.
The program is expected to cover major Apple products, including iPhone, Mac, iPad and Apple Watch. Some lower-cost devices may be excluded, and unlike the existing iPhone Upgrade Program, AppleCare is reportedly not included.
Apple wants more predictable hardware revenue
Apple’s hardware business has always relied on customers replacing devices every few years. Longer upgrade cycles and higher device prices have made that model harder to expand.
A leasing model creates a closer relationship between Apple and customers. Monthly payments can encourage more frequent upgrades while creating a more predictable revenue stream. The approach is similar to vehicle leasing, where customers regularly move to newer models instead of keeping the same product for many years.
The timing is also notable. Rising memory and storage costs, partly driven by AI infrastructure demand, are increasing pressure across the electronics industry. Monthly payments could make higher-priced devices easier for customers to accept.
Beyond the iPhone Upgrade Program
Apple already offers the iPhone Upgrade Program, but Apple Upgrade would expand the idea to more product categories. The move would bring iPhone, Mac, iPad and Apple Watch closer to a recurring payment model.
Services have become an important part of Apple’s business, and hardware leasing could add another predictable revenue source while keeping customers within the ecosystem.
Apple may not just be selling more devices. It may be changing how customers pay for them.
Apple has not officially announced Apple Upgrade, and details may change before launch. If introduced, it would represent one of the biggest changes to how Apple sells hardware in years.
