Apple is preparing to shake up how customers acquire its hardware with the launch of a new initiative called Apple Upgrade, which is scheduled to debut in the United States this Tuesday, July 28. According to reporting from Bloomberg’s Mark Gurman, this move marks a shift toward a leasing model designed to make high end tech more accessible through lower monthly payments. To facilitate these financial arrangements, Apple has partnered with the buy now, pay later service Klarna.
The transition comes at a cost for fans of the existing iPhone Upgrade Program, as Apple will stop accepting new sign ups for that specific plan on Tuesday. While current members can stay enrolled for now, newcomers will instead find themselves looking at lease terms spanning twenty four months for iPhones and Apple Watches and thirty six months for Macs and iPads. Once the term ends, users can choose between returning the device, upgrading to the latest model, or paying a fee to own the product outright.
It is worth noting that not every piece of gear will qualify for this arrangement. Entry level products such as the iPhone 16, the basic iPad, and the MacBook Neo are expected to be excluded from the program along with the Apple Watch SE. Additionally, unlike previous offerings, this new structure will not bundle AppleCare plus coverage into the monthly payment, meaning users will need to handle insurance separately if they want extra protection for their leased devices.