# Apple Upgrade Program: Does iPhone Leasing Make Sense? Details of Apple's revamped leasing program with Klarna and who it's best suited for. - **Source:** [Latest news](https://brifing.si/source/77d15218-219f-472d-bf40-31b5646d2942) - **Published:** 2026-08-20 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/ef49f87d-7faf-45f9-808e-51bb23234077 ## What is the Apple Upgrade Program? Apple's revamped Upgrade Program with Klarna allows leasing select Apple devices for low monthly payments. It covers iPhones, iPads, Macs and Apple Watches. At lease end, you can return the device in good condition to start a new lease or pay an additional fee to keep it. This isn't financing but a pure leasing model with no ownership transfer until final payment. ## Klarna's Role and Terms Fintech company Klarna manages the payment infrastructure. Lease agreements carry no extra interest and operate on a BNPL model. However, the program doesn't include AppleCare coverage. Consumers are liable for damaged, lost or stolen devices. Damaged returns incur additional fees. Optional AppleCare+ can be added separately for accident protection. ## Lease vs Purchase Comparison For iPhone 17 Pro: The $1,100 device costs $32/month for 24 months. After two years, you'd pay $768 total but must return the device. With Apple Card's 0% APR 24-month installment plan, you'd pay $46/month and own the device. While leasing appears cheaper short-term, it offers no long-term ownership benefits compared to outright purchase or financing. ## Early Termination and Keep Options Terminating early requires device return and paying remaining payments in lump sum (e.g., 5 months left = 5 payments due immediately). To keep the device at lease end, you pay the original full price minus payments made. Apple doesn't offer discounted buyout prices. This differs from some auto leases where residual values can create equity. ## Alternative Financing Options BNPL platforms like Affirm offer 0-36% APR plans up to 48 months. However, multiple purchases can create unmanageable combined payments. Apple Card's 0% 24-month plan or outright purchase often prove more economical than leasing for long-term users. Ownership enables resale or trade-in value that leasing doesn't provide. ## Eligible Devices The program only applies to specific devices purchased through Apple Store. Storage capacity, display size and taxes affect monthly payments. Latest iPhone 17 series, select iPads and Macs are included. However, not all new models join immediately, and inventory limitations apply. The program isn't available with all carrier plans either. ## Ideal User Profile Designed for consumers who upgrade every 1-2 years, can't afford large down payments, or prefer not to take loans. Less economical for long-term users. Appeals to tech enthusiasts embracing 'subscription economy' where constant upgrades outweigh ownership benefits. Business users may find tax advantages in leasing. ## Drawbacks and Risks Maintaining pristine device condition is mandatory - minor scratches may incur penalties. Without AppleCare+, repair costs fall on users. Economic fluctuations could make payments burdensome. Program availability varies by country and carrier compatibility. Early termination fees can negate perceived savings versus traditional financing. ## The Leasing Economy Verdict Apple's model reflects the 'access over ownership' trend in tech. While offering short-term flexibility, it may cost more long-term compared to ownership. Consumers should evaluate usage patterns: frequent upgraders may benefit, but long-term users often save more through purchase. The program represents a strategic shift toward recurring revenue streams in hardware. ## Sources covering this story - https://www.zdnet.com/article/leasing-iphone-right-how-apples-upgrade-program-works/ — --- _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._