The newly announced Apple Upgrade Program replaces the previous iPhone Upgrade Program through a partnership with Klarna, offering interest-free leasing across iPhones, iPads, Apple Watches, and Macs. Apple states the change provides "more flexibility, better value, and a more seamless experience" following recent price increases.

To lease a device, visit the Apple Store online or in person, select your product, and choose Apple Upgrade as payment. You'll complete a Klarna application with basic information and a soft credit check that doesn't affect your score. iPhones require activation with AT&T, T-Mobile or Verizon, and the iPhone 16 is excluded from the program. Trade-ins can lower initial payments, though each device requires a separate application.

Lease terms run 12 to 24 months for iPhones and Apple Watches, and 24 to 36 months for iPads and Macs. At the end, you can upgrade to a new device, return it and leave the program, or buy it outright. Unlike the old program where payments led to ownership and included AppleCare, the new system doesn't include AppleCare and doesn't guarantee ownership without a final purchase.

Monthly rates now start at $17.99 for iPhones and $11.99 for Watches and iPads — lower than the previous ~$30 minimum. With new Apple products expected in September, the program suits those wanting regular upgrades, though users should weigh leasing versus owning given incremental generational updates.