# Apple's New iPhone Upgrade Program: Lease to Own Apple's latest financing option makes premium iPhones more accessible with monthly payments. - **Source:** [Popular Science](https://brifing.si/source/cc3d313a-759c-4802-b881-fc8585f35ef9) - **Published:** 2026-08-08 - **Original article:** - **On Brifing:** https://brifing.si/s/684b1762-305b-4287-9c35-ed1226643938 ## What is Apple Upgrade? Apple has launched a new iPhone ownership model called Apple Upgrade. This program allows users to lease iPhones through 12 or 24-month contracts with fixed monthly payments. At the end of the term, customers can return the device, pay the remaining balance to own it, or upgrade to a new iPhone. The program lowers the initial cost barrier for accessing latest iPhone models while spreading payments over time. ## How It Works Apple Upgrade partners with Klarna to offer device financing. Users select an iPhone model and choose between 12 or 24-month payment plans. For example, the $999 iPhone Air 256GB costs $28.99/month for 24 months. After paying $695.76 over two years, users can pay the remaining $303.24 to own the device. The program requires AT&T, T-Mobile or Verizon service activation at purchase, though phones remain unlocked. Older iPhone 16 models aren't eligible. ## Differences from Previous Program Apple's older upgrade program was essentially an interest-free installment plan for outright purchase. The new Apple Upgrade is a true lease agreement. The previous program included AppleCare and allowed upgrades after 12 months, while the new program doesn't include AppleCare and only permits upgrades at contract end. Missing more than three payments cancels the agreement, requiring full payment. Devices must be returned in good condition. ## Cost Comparison The 256GB iPhone Air costs $999 upfront. Through Apple Upgrade, users pay $28.99/month totaling $695.76 over 24 months, then $303.24 to own it—the same as cash price but spread over time. For users who upgrade every two years, selling a purchased iPhone might yield better returns given strong resale values. However, selling requires effort compared to simply returning the leased device under the program. ## Pros and Cons Apple Upgrade's main advantage is making premium iPhones accessible through manageable monthly payments. It's ideal for frequent upgraders. However, those planning to keep devices long-term may find outright purchase more economical. The program requires carrier service and payment discipline. Devices must be maintained in good condition for return. Early termination or damage fees could negate the program's benefits for some users. ## Who Should Consider It? Apple Upgrade suits users who upgrade iPhones every 1-2 years but prefer spreading costs. It's particularly useful for those already needing carrier service and comfortable with ongoing payments. However, long-term users or those wanting to maximize resale value might prefer purchasing outright. The program's flexibility comes at a potential long-term cost premium compared to traditional ownership models. ## Other Apple Products Beyond iPhones, Apple Upgrade extends to select Apple Watches, Macs, and iPads with similar lease terms. Products like MacBook Air and iPad Pro can also be obtained through monthly payments. The program's device selection may expand over time. Current eligible products and pricing are available on Apple's official Upgrade program webpage, which provides detailed comparisons with traditional purchase options. ## Final Verdict Apple Upgrade presents an innovative approach to iPhone ownership through leasing. While offering accessibility to latest models through affordable payments, it may cost more long-term than outright purchases. The best choice depends on individual upgrade cycles and financial priorities. Tech enthusiasts who frequently upgrade will appreciate the convenience, while cost-conscious long-term users may still prefer traditional purchasing to maximize value retention. ## Sources covering this story - https://www.popsci.com/technology/is-the-new-apple-upgrade-program-worth-it-tech-tips/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._