Apple has announced a new leasing program that will allow customers in the United States to lease selected iPhones, Macs, iPads and Apple Watches instead of purchasing them outright. The initiative, launched in partnership with payment platform Klarna, will be available from Tuesday through Apple retail stores, the Apple Online Store and the Apple Store app.
The program represents a significant shift in Apple’s consumer financing strategy, replacing the long-running iPhone Upgrade Program with a broader offering that covers multiple product categories. By introducing flexible lease terms and lower monthly payments, Apple aims to make its premium devices more accessible at a time when electronics prices continue to rise and consumers are keeping their devices for longer periods.
Under the new leasing model, iPhones and Apple Watches can be leased for either 12 or 24 months, while Macs and iPads will be available on 24- or 36-month lease agreements. At the end of the lease period, customers will have options regarding their devices, depending on the terms of the agreement.
Eligible Devices
The leasing program covers Apple’s latest premium product lineup, including:
- iPhone 17 series
- iPhone Air
- Apple Watch Series 11
- Apple Watch Ultra 3
- MacBook Air
- MacBook Pro
- iMac
- Mac Studio
- iPad Air
- iPad Pro
- iPad mini
However, several entry-level Apple products are excluded from the program. These include:
- iPhone 16
- MacBook Neo
- Base-model iPad
- Apple Watch SE
Lower Monthly Costs
One of the major attractions of the new leasing plan is its affordability. Apple’s website lists lease payments for eligible iPhones starting at $17.99 per month, substantially lower than the approximately $42 per month required under the previous iPhone Upgrade Program.
By reducing upfront financial commitments, Apple hopes to attract more consumers who may be hesitant to purchase increasingly expensive devices outright.
Replacing the iPhone Upgrade Program
The new leasing initiative officially replaces Apple’s iPhone Upgrade Program, which allowed customers to upgrade to a new iPhone after making 12 monthly payments.
Unlike its predecessor, the new program extends beyond smartphones to include Macs, iPads and Apple Watches while also offering greater flexibility through multiple lease durations.
This broader approach reflects Apple’s effort to transform premium hardware ownership into a subscription-like experience with predictable monthly expenses.
Responding to Market Trends
Apple’s decision comes amid changing consumer behavior. According to a 2025 survey conducted by Reviews.org, the average American smartphone user now keeps their device for approximately 22 months, significantly longer than in previous years.
Industry analysts believe that flexible leasing options could encourage more frequent upgrades despite higher device prices.
Francisco Jeronimo, an analyst at International Data Corporation (IDC), noted that the program could change how consumers perceive Apple products, shifting them from large one-time purchases to recurring monthly expenses.
He also stated that the timing is strategically important for Apple, as rising prices could otherwise slow the company’s upgrade cycle.
Rising Prices Across Apple’s Product Line
The leasing program arrives during a period of increasing hardware costs.
Earlier this year, Apple raised prices on several Mac and iPad models due to an ongoing shortage of memory components driven by growing demand from data center infrastructure.
Analysts also expect Apple’s upcoming smartphones to become more expensive. Mike Howard, Vice President of Memory Coverage at TechInsights, recently suggested that consumers should begin expecting flagship iPhones to cost around $1,500, compared to the traditional $1,000–$1,200 price range.
Launch Ahead of Apple’s Next Flagship Devices
The announcement comes just weeks before Apple’s anticipated September product event, where the company is widely expected to unveil the iPhone 18 lineup, including what could become Apple’s most expensive smartphone to date—a foldable iPhone.
Introducing the leasing program before these launches may help reduce the impact of higher retail prices by emphasizing affordable monthly payments instead of total purchase costs.
Strategic Significance
Apple’s new leasing initiative reflects the broader evolution of the consumer electronics market. As device prices increase and replacement cycles lengthen, financing and leasing models are becoming increasingly important tools for maintaining customer engagement and encouraging regular hardware upgrades.
By partnering with Klarna and expanding beyond smartphones, Apple is positioning premium devices as subscription-style products, offering customers greater flexibility while strengthening long-term relationships with its ecosystem.
If successful, the program could redefine how consumers purchase high-end technology, making leasing a mainstream alternative to outright ownership.
