CUPERTINO: Apple is reportedly set to introduce a new financing service called Apple Upgrade, giving customers a more flexible way to purchase eligible iPhones, iPads, Macs and Apple Watches through affordable monthly installments.
According to a recent report, the new program is expected to replace Apple’s existing iPhone Upgrade Program, while expanding financing options across a wider range of Apple products.
Flexible Payment Plans
Under the proposed financing model, customers will be able to spread payments over:
- 24 months for eligible iPhone and Apple Watch models.
- 36 months for qualifying iPad and Mac devices.
The program will also allow users to pay off their device early, upgrade to a newer model before the financing term ends, or keep or return the device once the agreement expires.
Some Devices Excluded
Not every Apple product will qualify for the new financing plan.
According to the report, several lower-priced devices—including the Apple Watch SE, entry-level iPad, iPhone 16, and MacBook Neo—are expected to be excluded from the Apple Upgrade program.
Klarna Partnership Expected
Apple is reportedly partnering with Klarna, one of the world’s leading Buy Now, Pay Later (BNPL) providers, to power the financing service.
Like other BNPL services, Apple Upgrade will require customers to complete a soft credit check, while additional fees may apply depending on individual financing terms.
AppleCare+ Not Included
One significant difference from the current iPhone Upgrade Program is that the new Apple Upgrade service is not expected to include AppleCare+ protection as part of the monthly payment plan.
Customers who want extended warranty coverage and accidental damage protection may need to purchase AppleCare+ separately.
Existing Upgrade Program to End
The report also states that Apple plans to stop accepting new enrollments for its existing iPhone Upgrade Program once Apple Upgrade officially launches.
The company is expected to market the new service as a simpler, all-in-one financing solution that offers lower monthly payments compared with some of its current installment plans.
If introduced, Apple Upgrade would become Apple’s primary financing platform, making it easier for customers to purchase premium Apple devices while providing greater flexibility to upgrade or switch products throughout the payment period.
