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ZDNET's key takeaways
- Apple officially launched its new Apple Upgrade leasing program.
- Customers can lease iPhones, Watches, iPads, and Macs.
- Apple Upgrade is best for those who like to upgrade their iPhone annually.
Apple Upgrade, the company's new device leasing program, allows customers to lease devices through the buy-now, pay-later giant Klarna for 12-, 24-, or 36-month periods before upgrading.
Apple Upgrade replaces the iPhone Upgrade Program, a 24-month financing plan, and lets customers forgo bundled AppleCare and complete only a soft credit check to determine lease eligibility. Instead of paying off a device you own, the new program allows customers to lease iPads, Macs, and Apple Watches.
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Now, you have several options to buy new gear through Apple: leasing via Apple Upgrade with Klarna, financing through Apple or a mobile carrier, or paying the full price for their device up front.
Which option makes the most sense? The answer depends on your goals -- let's break them down.
Should you lease with Apple Upgrade?
Like the original iPhone Upgrade Program, Apple Upgrade is ideal for people who want to upgrade their iPhone to the latest generation each year, and are comfortable with leasing it -- not owning it outright. Apple Upgrade now extends this option to those who want a new Apple Watch every one to two years or a new Mac or iPad every two to three years.
If you're more concerned with getting a new device every few years than owning it, the leasing program could be up your alley.
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The Apple Upgrade program is the most affordable way to frequently upgrade your iPhone. For example, leasing a $1,099 iPhone 17 Pro with 256GB is $45.99/month for 12 months. After paying $551.88 over the 12-month period, you can upgrade. So, you pay for 50% of the phone's retail price, then you can get a new phone. If you enter Apple Upgrade in September, when a new iPhone launches, you'll be on schedule to upgrade when the next one comes out.
Over a 24-month leasing plan, you'll pay $31.99/month, totaling $767.76, or 70% of the phone's retail price. You must have a mobile carrier plan to lease an iPhone through Apple Upgrade, but your phone will be unlocked, meaning you can switch carriers throughout your Apple Upgrade leasing period.
If you trade in a current device, you may shave off the price of your initial lease agreement, but you'll enter a new agreement once you upgrade your device -- no more trade-in credits.
Apple Upgrade offers leasing options for Macs -- over 24- or 36-month periods. A $2,000 14-inch M5 MacBook Pro with 16GB of RAM, 1TB SSD, and a standard display costs $53.99/month for 24 months, the shortest leasing period. After 24 months, you'll pay $1,295.76, or 65% of the laptop's retail price, before needing to upgrade and start a new leasing agreement for a new laptop. If you lease the same MacBook Pro for 36 months, you'll pay $38.99/month, totaling $1,403.64, which is 70% of the laptop's retail price.
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If you lease an Apple Watch through Apple Upgrade, you'll pay more than half of the Watch's retail price over a 12-month leasing period; leasing a $499 42mm aluminum Apple Watch Series 11 with GPS and cellular yields a $27.56/month payment. After 12 months, you've paid $330.72, or 66% of the Watch's retail price. You'll pay 73% of the same watch's retail price if you opt for a 24-month leasing plan.
Customers can purchase AppleCare+ for their leased devices, and Apple's fine print says that insurance is not included in the lease. According to Apple's press release, customers "may incur damage fees if the device is lost, stolen, or not returned in the condition required by the lease."
So whether you lease through Apple Upgrade, finance your iPhone, or purchase it outright, buying AppleCare remains a good idea.
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If you want to upgrade your devices every one to three years, Apple Upgrade is the best option. The end goal of Apple Upgrade is not to own your devices; if you decide you want to keep a leased device, you'll have to pay a fee. If your sole motivation for monthly payments is to give yourself more time to pay off larger-ticket items, financing through Apple may be the better option.
Should you finance your devices?
You should finance your devices if you intend to keep them for a few years, but want to spread payments over time. If you finance your iPhone through Apple in-store or online, you can finance it either through a mobile carrier or through Apple via monthly Apple Card payments. The latter option does require an Apple Card. Then, you'll pay a monthly Apple Card bill for the hardware and pay your carrier's service fees separately.
If you finance a phone at the Apple Store, in person or online, you'll pay 0% APR. If you choose to finance through an Apple Card, missed monthly payments are subject to Apple's variable interest rates, just like any other credit card.
If you finance your phone through Apple, you aren't required to trade in your existing phone. When financing through a mobile carrier in their store, you may be required to trade in your current phone or upgrade your connectivity plan to get the phone you want. A mobile carrier also may not allow additional payments on a financed phone to pay it off early -- Apple does.
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Financing your iPhone through a carrier usually means you're stuck with that carrier for the remainder of your financing term; you can't switch providers until the phone is paid off. If you want to terminate an active financing with a mobile carrier, you'll likely incur hefty termination fees.
In my experience, I've found that financing a phone at the Apple Store, in person or online, avoids the sometimes pushy, hours-long dance with mobile carrier salespeople and lets you easily add a phone to an existing connectivity plan. You can purchase a connectivity plan through a carrier online or in-store, and add your financed iPhone later.
Should you pay for your device in full?
You should pay for your iPhone, Mac, iPad, or Apple Watch in full if you plan to keep it for several years. If you're budget-conscious, it doesn't make much sense to pay $1,100 for an iPhone 17 Pro just to buy another one the next year. If you don't get the itch to upgrade annually or even every three to five years, buying your devices outright is ideal if you don't want to be tied to monthly payments or a mobile carrier for 2 to 3 years.
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I paid $1,100 for a 13-inch M2 MacBook Air in full from the Apple Store in 2022, and I believe I made the best decision for my needs. A MacBook isn't a device I feel the need to upgrade often; I'm content sticking with the one I have until it stops working.
I also bought an iPhone 17 and my husband's iPhone 16 outright from the Apple Store in 2025 and 2024, respectively, as we stick with our iPhones until they stop working. However, we did purchase AppleCare One for our iPhones for peace of mind. As a result, we pay Apple $20/month for device protection, and pay AT&T separately for connectivity.
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