Bloomberg reports Apple plans to launch a new Apple Upgrade leasing contract to replace the iPhone Upgrade Program. The current program splits device cost over 24 months with zero interest, letting you own the iPhone outright or upgrade after 12 months by starting a new contract.

The reported replacement would extend to most Apple products with a three-year term for Macs. However, it allegedly functions like a car lease: monthly payments cover only depreciation plus interest, not the full purchase price. At lease end, you don't own the device—you must return it or pay a balloon payment for the remaining value.

While lower monthly payments increase accessibility, the author warns most consumers don't save for balloon payments. This traps users in perpetual upgrade cycles—every two years for iPhones, three for Macs—raising lifetime costs. The potential exclusion of AppleCare+ adds risk: if a leased device is lost or damaged, you'd still owe payments plus the balloon amount.

The author argues Apple should offer both programs, letting consumers choose ownership flexibility over forced upgrades.