Apple has introduced a new leasing programme in the United States that lets customers use iPhones, Macs, iPads and Apple Watches by paying a fixed monthly amount instead of buying them.

On July 28 local time, Business Insider and other foreign media reported that Apple said it would start “Apple Upgrade” with buy now, pay later firm Klarna. Apple has already offered Klarna as a payment option on Apple Pay, so the tie-up is not an entirely new relationship.

The programme’s core is lower monthly payments by renting a device for a set period instead of buying it. It is structured like a car lease, with customers paying a fixed monthly amount without owning the device. iPhones and Apple Watches default to 24-month contracts, and customers can choose 12 months, but the monthly cost rises. iPads and Macs default to 36-month contracts, and shortening the term to 24 months also increases the monthly cost.

Monthly payments for base models under iPhone 24-month contracts are $17.99 for iPhone 17e, $22.99 for iPhone 17, $28.99 for iPhone Air, $31.99 for iPhone 17 Pro and $34.99 for iPhone 17 Pro Max. Monthly payments rise slightly with more storage, and the 2TB iPhone 17 Pro Max starts at $58.43 a month.

For iPads on 36-month contracts, monthly payments are $11.99 for iPad mini, $15.99 for iPad Air 11-inch, $19.99 for iPad Air 13-inch, $24.99 for iPad Pro 11-inch and $30.99 for iPad Pro 13-inch. For Macs on 36-month contracts, they are $24.99 for MacBook Air 13-inch, $28.99 for iMac, $28.99 for MacBook Air 15-inch, $38.99 for MacBook Pro 14-inch, $48.99 for Mac Studio and $57.99 for MacBook Pro 16-inch. For Apple Watches on 24-month contracts, they are $11.99 for Series 11 42mm, $12.85 for Series 11 46mm and $24.99 for Ultra 3.

If a base iPhone 17e is bought and owned through instalments, it costs $24.95 a month, making the Apple Upgrade monthly payment lower. A $1,199 iPad Pro can be used on a 24-month lease for $32 a month, or $768 in total, spreading the upfront burden without interest or additional fees.

At the end of the lease, users can return the device to Apple or keep it by paying the remaining cost. Returned products are recycled or resold depending on their condition. Apple says in its terms that devices must be returned in normal working condition at the end of the rental period, and separate fees may be charged depending on damage when returning or changing devices. Apple said that if users do not pay the remaining balance or switch to a new device after the term ends, the plan automatically rolls into monthly payments for up to 6 months, and monthly payments may rise during that period. Substantial fees may also be charged for ending a lease early or switching to a different device before the term ends.

Apple said it will end its existing iPhone upgrade programme in the United States, which had cost about $42 a month, alongside the launch of the new programme. The existing programme included AppleCare coverage, but AppleCare is not included in the base monthly price for Apple Upgrade. Users must pay more than the displayed monthly amount to prepare for accidental damage. The Klarna sign-up process also includes a soft credit check.

The programme comes amid a recent trend of hardware price increases. Apple raised MacBook and iPad prices in June, with increases ranging from $100 to more than $1,000 depending on the model. The industry views global memory supply pressure as the reason behind the price rises. Apple is widely expected to raise iPhone prices further when it unveils new iPhones in September. A lengthening smartphone replacement cycle is also cited as a factor pushing consumers to choose based on monthly burden rather than buying devices outright.

The structure is seen as suitable for users who switch to a new model every year or every 1 to 2 years and prioritise lower monthly costs over device ownership. Some also point out that for users who keep one device for several years, buying from the start may be more advantageous. As a credit-based product, concerns have also been raised that buy now, pay later services such as Klarna target young consumers with low credit scores, who may be more vulnerable to fees or delinquency risks. Some also say it can be a reasonable choice for consumers who can afford monthly payments, because it is simpler than the Apple Card sign-up process and offers lower monthly costs than the interest-free instalment plans Apple Card provides for Apple device purchases.