Apple is retiring its iPhone Upgrade Program this year and is replacing it with a new leasing option called Apple Upgrade. Run in partnership with Klarna, you can lease a new device for a monthly fee over a 12-, 24-, or 36-month installment plan. It's different from Apple's previous iPhone Upgrade Program because you aren't financing a phone you eventually own; you can lease (or basically rent) a new Apple Product temporarily. You must return the phone or device at the end of your term, or pay the remaining balance if you want to keep it.
You can lease the latest Apple products—including a new iPhone, iPad, Mac, and Apple Watch—without paying the full price upfront. And while you no longer have to shell out lump sums over $1,000 for a new iPhone with each release, you might want to consider if the upgrades are worth it before signing up.
Keep reading to learn all about Apple's new upgrade program and find out if it's right for you.
Not sure if you want to lease? Get a new iPhone cheap
If you don't want to lease, you can still snag the latest iPhone at a discount through your cell phone provider. Most major carriers offer major device deals with hundreds of dollars off the newest iPhone if you switch and sign up with a new line.
Check out the best trade-in deals and best iPhone offers below:
iPhone 18 Pro 256GB
- 6.3 inch display
- Rear Cameras: 48MP, 48MP, 48MP
- Front Camera: 18MP
iPhone 18 Pro Max 256GB
- 6.9 inch display
- Rear Cameras: 48MP, 48MP, 48MP
- Front Camera: 18MP
iPhone 18 Pro 512GB
- 6.3 inch display
- Rear Cameras: 48MP, 48MP, 48MP
- Front Camera: 18MP
What is Apple Upgrade?
Apple Upgrade is a new device leasing program from Apple in 2026. In a nutshell, you can lease (rent to use) an Apple device for a monthly payment through the third-party payment system Klarna. You do not pay Apple directly; instead, Apple collects your payment via Klarna.
Image: Apple
That said, unlike the previous Apple iPhone Upgrade Program, which was basically a no-interest loan for an iPhone and AppleCare+, Apple Upgrade doesn't give you ownership after your installment plan. Since it's a lease, you have to return your device, whether that be an iPhone, iPad, Mac, or Apple Watch. Plus, any other Apple accessories and AppleCare+ are charged separately. If you do want to keep your leased device, you can pay the payoff amount once your term ends.
You can only upgrade again once your installment term ends. So if you want to upgrade to an even newer model iPhone with the yearly release, you have to opt for a 12-month installment plan, which means your monthly payment will be higher. Otherwise, you'll have to pay the full remainder of your 24- or 36-month plan in order to upgrade.
You can pair your iPhone with any major carrier through the program, including AT&T, T-Mobile/Sprint, and Verizon. You can also switch between these carriers while in the program. Just note that the major carriers have upgrade programs separate from Apple Upgrade. To join Apple Upgrade, you must go through Apple, not the carrier.
You can learn more about the individual carrier upgrade program in our guides:
What happened to the iPhone Upgrade Program?
Apple removed the iPhone Upgrade Program in order to debut Apple Upgrade in 2026. The new leasing program completely changes the old iPhone Upgrade Program model. Instead of a no-interest loan from Apple for a new device you own, new customers can only enroll in Apple leasing to rent a device on an installment plan. If you want to keep it at the end of your term, you have to pay the remaining balance.
Before you commit, make sure the newest iPhone is worth the upgrade. Keep up to date with the latest information in our guide to top-secret iPhone rumors and our breakdown of the latest models.
How Apple Upgrade works
Here's a breakdown of how Apple Upgrade works:
- Choose your product (iPhone, iPad, Mac, or Apple Watch) and lease term. iPhones and Apple Watches offer 12- or 24-month terms, while iPads and Macs offer 24- or 36-month terms.
- Trade in a device you already own when you first enroll to lower your monthly payment for the initial term.
- Pending a credit check, you make monthly lease payments through Klarna, which handles billing and account management.
- Once your lease term ends, Apple will let you know you're eligible to upgrade. At that point, you can upgrade to a new device and return your current one, buy your current device, or leave the program and return the device.
If you're leasing an iPhone, you'll need to connect to a major carrier for service when you enroll. AT&T, T-Mobile, or Verizon all qualify as accepted carriers, but smaller MVNOs like Mint Mobile or Visible don't. If you don't currently have a phone plan with one of the Big Three, check out our guide on switching carriers before you enroll.
Worried about damage? Read the fine print carefully
AppleCare isn't automatically bundled into your lease payment. You can add AppleCare+ or AppleCare One separately within 60 days of enrolling. Remember that since this is a lease, you have to return the phone. If you lose it halfway through your term, you still have to pay it off. You might want to protect yourself from unwanted monthly payments with added protection.
What do I need to enroll?
In order to enroll in Apple Upgrade, you need to be at least 18 years old and have:
- A Social Security number or individual taxpayer identification number (ITIN)
- A credit or debit card (some are not eligible, like AMEX or Chase)
- An Apple account (in good standing)
- A Klarna account
If you are missing any of these requirements, you won't be able to lease with Apple Upgrade.
How much does Apple Upgrade cost?
Apple Upgrade pricing depends on the device you choose and the length of your lease. For example, the newer the model, the more expensive your monthly payment. The same goes for leasing terms: The shorter your installment plan, the higher your monthly payment.
Here's what Apple lists as the starting monthly price for each current iPhone model (before tax, trade-in credits, or AppleCare add-ons):
Apple Upgrade device pricing comparison
| iPhone model | 12-month lease | 24-month lease |
|---|---|---|
| iPhone 18 Pro | $49.99 | $34.99 |
| iPhone Duo | $82.99 | $57.99 |
| iPhone 17 Pro | $45.99 | $39.99 |
| iPhone 17 | $32.99 | $22.99 |
| iPhone 17e | $24.99 | $17.99 |
| iPhone Air | $41.99 | $28.99 |
*Current pricing at the time of writing. Check Apple's website for updated information.
The higher the iPhone price, the higher the monthly payment. That said, upgrading to an older device is cheaper, and you usually get similar features. Older iPhones offer excellent specs at a lower price. You should compare the iPhone 17 and 16 models to see which one better fits your needs.
Are you currently enrolled in the iPhone Upgrade Program?
If you enrolled in the iPhone Upgrade Program before it ended, you don't need to do anything right now. Apple confirmed that current customers enrolled can continue making payments as usual, but once you're eligible for your next iPhone, you'll have several paths forward:
- Lease a new iPhone through Apple Upgrade
- Finance a new iPhone with Apple Card Monthly Installments
- Buy your next iPhone outright with a one-time payment
- Switch to a carrier financing plan instead
Apple will also notify you directly once you've made enough payments to qualify for your next upgrade, so don't worry.
How do I sign up for Apple Upgrade?
You can apply for Apple Upgrade by following the enrollment steps on the Apple website.
All you have to do is choose the device you want and pick your installment plan. Then, follow the prompts to complete your application and connect to Klarna.
Is the Apple Upgrade program right for me?
Before joining Apple Upgrade, consider these pros and cons:
Pros:
- Manageable monthly payments
- Easy upgrades every one or two years
- No large lump sums to pay
- Flexibility to switch between major carriers
Cons:
- Don't own the device at the end of the term
- Forced to pay for AppleCare
- Credit check required
- Can't switch to MVNOs without paying off the phone
Apple Upgrade could be right for you if you always want the newest iPhone available. You'll pay relatively low monthly payments instead of several hundred dollars at once. Plus, it gives you an easy way to upgrade your iPhone each year and the flexibility to switch between major carriers whenever you want.
The major downside is that you don't own the phone after you pay a year or two for it. But if you don't mind returning your phone in order to upgrade to the newest models, then that shouldn't be a problem for you. Also keep in mind that if you want more flexibility to choose carriers outside the big three, Apple Upgrade doesn't work with budget carriers. You'll have to pay off the remainder of your phone before you can switch carriers. Honestly, you just might be better off buying your phone outright and only upgrading when you need a new phone.
Also, keep in mind that you have to pay extra for AppleCare. If you aren't especially careful with your phone, you'll be charged for any damage when you turn it in.
Apple Upgrade: FAQ
Is the Apple Upgrade Program worth it?
If you want a new iPhone every one or two years, and the flexibility to switch between the major carriers, Apple Upgrade might be worth it for you.
How can I get a free iPhone upgrade?
Your best bet for getting a free iPhone upgrade is dealing directly with a major carrier. You will likely have to trade in your completely paid-off phone and agree to a finance plan with the new carrier. That carrier will apply monthly credits to you, resolving your device payment.
How do you qualify for Apple Upgrade?
To qualify for Apple Upgrade, you must be at least 18 years old, have an Apple account in good standing, have a Klarna account, and have a credit or debit card. You will also be subject to a credit check.
What is the cheapest way to upgrade my iPhone?
The cheapest way to upgrade your phone is by getting the most out of your current phone. Don't upgrade until your phone no longer meets your needs or no longer works and cannot be repaired. It's important to understand that Apple Upgrade is not a loan or a discount program. You are still paying a lot towards your phone; you just pay in small increments over time.
Jessica Santero
Staff Writer
Find a better phone plan
Thousands of cell phone plans unpacked. All the facts. No surprises.
