Apple Launches Hardware Rental Plan 'Apple Upgrade' with Klarna

Apple announced on July 28, 2026 the launch of a hardware rental program called 'Apple Upgrade' in the United States. The program is offered in partnership with buy-now-pay-later service Klarna, covering Apple's physical retail stores and online store. After a soft credit check, users can choose rental plans for iPhones, Apple Watches, Macs, and iPads. iPhones and Apple Watches offer 12- or 24-month rental options, while Macs and iPads offer 24- or 36-month options. At the end of the rental period, users must return the device, but can also pay an additional fee to purchase it outright or upgrade to a new device. The program requires no deposit, and Klarna does not charge late fees, but if a user fails to pay for three consecutive months, the rental contract will be terminated.

Monthly rental prices vary by device. iPhone rentals start at $17.99 per month, with an unlocked iPhone 17 Pro costing $31.99 per month on a two-year plan and $45.99 per month on a one-year plan. Apple Watch Series 11 rentals start at $11.99 per month, MacBook Air at $24.99 per month, and iPad Air at $11.99 per month. Some entry-level products such as the iPhone 16 and MacBook Neo are not included in the program. High-end models carry higher fees, with the iPhone 17 Pro monthly price significantly above the entry-level model.

Apple also announced that it will discontinue the 'iPhone Upgrade Program' in the United States and transfer existing users to the 'Apple Upgrade' program. Previously, the iPhone Upgrade Program included AppleCare warranty coverage, with users paying in 24 installments at a monthly fee exceeding $42. The new plan offers lower monthly payment options.

One month ago, citing tight global memory chip supply, Apple raised the starting prices of iPads and Macs by at least $100, with some models seeing increases of more than $1,000. Currently, the average iPhone replacement cycle has extended to nearly four years.