Apple's long-standing iPhone Upgrade Program, which allowed users to get the latest iPhone models with AppleCare included for over a decade, is being discontinued.

Starting July 28, a new pay-as-you-go plan called Apple Upgrade will effectively replace it and other existing installment plans.

While customers currently enrolled can continue their existing arrangements, new users will be directed to Apple Upgrade. This new program will offer installment plans for a wider range of hardware, including iPhones, iPads, and Macs, with lease terms of 24 to 26 months. A key difference is that AppleCare will no longer be bundled.

The iPhone Upgrade Program, launched in 2015, provided an unlocked iPhone with AppleCare+ and the option to upgrade annually after 12 months. The new Apple Upgrade program will be financed by Klarna, replacing previous providers like Citizens One in the U.S. and Barclays in the U.K., potentially facilitating smoother international expansion.