Apple launched a new program called Apple Upgrade on July 28, 2026. It lets people in the United States lease an iPhone, Mac, iPad, or Apple Watch instead of buying it upfront. At the end of the lease, you can keep the device, pay it off early, or swap it for a newer model. The setup is similar to how car leasing works (The Verge; Bloomberg).

The lease length depends on what you are getting. iPhones and Apple Watches come with a 24-month term. Macs and iPads come with a 36-month term (MacRumors). This program covers all four of Apple's major product categories, which makes it broader than the older iPhone Upgrade Program that only covered phones.

The launch comes shortly after Apple raised prices on MacBooks, iPads, and other devices. Those increases were caused by shortages of memory and storage components. iPhones were not affected by those price hikes, but CEO Tim Cook warned that the pricing situation "has become unsustainable" and that the iPhone 18 series could be more expensive than expected when it launches later in 2026 (The Verge).

The timing is worth paying attention to. Apple rolled out a program that lowers the monthly cost of getting its devices right after raising prices on some of them, and ahead of what could be a more expensive iPhone launch. Apple has not said whether this was a planned strategy or a reaction to cost pressures. Either way, the effect is the same. If a customer finds the full price too high, Apple can steer them toward a lease that spreads the cost across two or three years.

The financing is handled by Klarna, a company that specializes in buy-now-pay-later services. In plain terms, Klarna lets consumers split purchases into installment payments over time. Apple chose to use Klarna rather than handle the financing through its own Apple Financial Services division. That suggests Apple wanted to get the program running quickly rather than building the whole payment system itself (Bloomberg; Reuters).

The program also tackles a problem Apple has been dealing with: people are keeping their devices longer. As each new generation of hardware offers smaller improvements, fewer people feel the need to upgrade as often. That means Apple earns less from people buying new devices. A lease with a built-in early-upgrade option gives people a reason to hand back their device sooner than they otherwise would.

Including Macs and iPads in the program is a notable step for Apple. The 36-month lease terms for those products roughly match how long many people use a Mac or iPad before replacing it. That means the lease-to-own structure may feel more like a standard installment plan that also guarantees you can trade in your old device. For iPhones and Apple Watches, the 24-month term lines up with the two-year upgrade cycle that many phone owners are already familiar with.

One important thing is still missing: the actual monthly prices. The structure of the program is clear, but the cost to consumers is not. That matters because the whole deal depends on whether the monthly payments plus any costs at the end add up to a better deal than simply buying the device and selling it used later.

In my view, Cook's description of the pricing environment as "unsustainable" is worth taking seriously here. If the cost of components keeps rising, the gap between what Apple charges and what customers are willing to pay will widen. A leasing program could shift from being a convenient option to being a necessity for keeping sales volume up at the high end. The iPhone 18 launch later this year will be the first real test of whether this program can absorb a price increase or whether Apple will hold prices down to make the leasing math work.

Apple Upgrade is now available in the United States. No date has been announced for expansion to other countries.