Apple will partner with Klarna to launch a lease-to-own program called Apple Upgrade, covering iPhones, iPads, and Macs. The program is set to launch on July 28, 2026, with lease terms extending up to 24 months for iPhones and up to 36 months for Macs and iPads. At the end of the lease period, customers can keep the device, return it, or upgrade to a new one, though some transactions will incur an additional fee TechCrunch.

Bloomberg first reported the partnership on July 21, 2026. The initiative arrives as Apple plans to stop new customer sign-ups for its existing iPhone Upgrade program, shifting customers toward the broader Apple Upgrade ecosystem instead. The iPhone Upgrade program was narrower in scope, limited to Apple's smartphone lineup, whereas the new program extends financing across the company's primary hardware categories.

The selection of Klarna as the financial partner for this expansion places a major European buy-now-pay-later (BNPL) provider at the center of Apple's hardware purchasing infrastructure. BNPL services let consumers split purchases into installment payments, often at the point of sale, without going through a traditional bank loan process. For Apple, the shift from a phone-specific upgrade cycle to a multi-device leasing model creates a single financial pathway for consumers acquiring its full hardware portfolio. The inclusion of Macs and iPads in a 36-month leasing cycle aligns the payment terms with longer device replacement cadences typically associated with computers and tablets, differentiating the terms from the shorter, 24-month cycle designated for iPhones.

The ability for customers to keep, return, or upgrade at the end of the lease term provides a built-in mechanism for hardware retention and trade-in flow. The additional fees attached to some transactions introduce a variable cost layer that consumers and enterprise procurement teams will need to weigh against outright purchase models or carrier-financed alternatives.

The broader context here is the evolution of hardware ownership models. As device prices for flagship phones and professional-grade Macs have increased, outright purchase has become a heavier capital expenditure for both consumers and businesses. A unified lease-to-own framework spanning Apple's primary product lines offers a formalized alternative to carrier financing, allowing unlocked hardware acquisition on terms set by the manufacturer and its financial partner rather than telecom providers.

For technology professionals and enterprise IT administrators, the 36-month lease terms for Macs and iPads map directly to standard hardware depreciation and refresh cycles. A three-year leasing window on computing equipment allows organizations to align device returns or upgrades with typical warranty expiration and performance degradation curves, potentially simplifying asset management. The upgrade option at the end of the term also provides a structured mechanism for deploying current-generation hardware to employees without managing the secondary market for retired machines.

By partnering with Klarna rather than building a proprietary financing stack, Apple leverages established regulatory and risk-management infrastructure for global credit underwriting. The additional fees on certain transactions likely reflect the operational costs associated with device returns, refurbishment, or early upgrade logistics.

The transition away from the iPhone Upgrade program signals the end of a smartphone-specific financing era for Apple, replacing it with a comprehensive hardware subscription model. By integrating Klarna's infrastructure, Apple positions itself to capture recurring revenue across its ecosystem while providing consumers a flexible, lower-barrier entry point into its most expensive devices.