Forget the iPhone Upgrade Program: Apple launches new leasing option
After 11 years, the iPhone Upgrade Program is being replaced.
Shopper outside the Fifth Avenue Apple store in New York. Michael Nagle/Bloomberg via Getty Images
- Apple to launch Apple Upgrade in the US on July 28 as a leasing option for multiple device categories.
- The program offers 24-month leases for iPhones and Apple Watches, and 36-month leases for Macs and iPads.
- Apple Upgrade will replace the iPhone Upgrade Program for new customers, while existing members can continue using it for now.
Key Takeaways by nexos.ai, reviewed by Cybernews staff.
A new program will include more devices and a longer leasing period for certain products.
Apple is expected to release a new option for users to purchase its latest devices. The company is introducing the Apple Upgrade program in the US on July 28th.
The Apple Upgrade program will work as a subscription service, allowing users to pay off their device early, upgrade to a new one, or keep it after the leasing period ends. The device can also be returned after that period.
The leasing period for Apple smartphones and smartwatches will be 24 months, while for Macs and iPads it will be 36 months.
The program also includes limitations on which iPhone, Mac, Apple Watch, and iPad models are available for purchase through the program.
So far, it’s been reported that iPhone 16, MacBook Neo, entry-level iPad, and Apple Watch SE will not be available for purchase via the Apple Upgrade program.
Apple Upgrade will also not include Apple Care, the company’s warranty deal.
Customers could sign up for the deal in both physical and digital stores.
iPhone Upgrade Program replacement
The upgrade is set to replace the company’s iPhone Upgrade Program (iUP), which lets users get a new smartphone every year.
Following the launch of the new upgrade program, Apple will no longer support the iPhone Upgrade Program for new customers, Bloomberg reports. Nevertheless, those already enrolled will continue to use it for now.
The company first introduced the iPhone Upgrade Program in 2015.
The program offered a way to purchase a new smartphone without paying the full price.
Another appealing aspect of the program was the option to renew your smartphone every year.
Nevertheless, to be eligible for the iUP, users have to meet certain conditions.
These criteria include signing a 2-year 0% APR installment loan “for the full retail price of the eligible iPhone.”
The program also provides users with AppleCare+ or AppleCare+ with Theft and Loss.
Users who want to participate in the program must have a new or existing wireless service plan with AT&T, T-Mobile, or Verizon.
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Spreading the cost
For the Apple Upgrade program to work, the company struck a deal with Klarna, its financial backer, according to people familiar with the matter, Bloomberg reported.
Previously, Apple had been working on a subscription-based program that would allow users to change their smartphones early by paying monthly fees for the device.
This would’ve been an in-house service, with Apple providing the loans. Users would then be billed monthly through their Apple account.
However, the company stopped working on the program in 2024.
Annual smartphone releases and the increasing device costs make subscription-based purchases an easier way for users to get the latest and greatest without breaking the bank.
According to a recent survey, the percentage of people replacing their current iPhones with new ones is increasing.
The option to pay for their smartphone in installments allows users to get the latest device, access additional add-ons such as insurance or repair services, and avoid investing large sums of money at once.
FAQ about Apple Upgrade program
What’s happening to the iPhone Upgrade Program?
It is being replaced for new customers by the new Apple Upgrade program, but existing iPhone Upgrade Program members can continue using it for now.
How will the Apple Upgrade program work?
It will work like a subscription/leasing plan: users make payments, can upgrade early, keep the device at the end, or return it after the lease period. The term is 24 months for iPhones and Apple Watches, and 36 months for Macs and iPads.
How to get approved for the Apple upgrade program?
It’s not yet clear what requirements customers will need to meet to be eligible for the Apple Upgrade Program.
Is the Apple upgrade program worth it?
It may be worth it for people who want lower upfront costs and flexibility to upgrade, keep, or return devices. But it does not include AppleCare, and not all devices are eligible.
What’s the difference between the iPhone Upgrade Program and Apple Upgrade?
The iPhone Upgrade Program is for iPhones, includes AppleCare+, requires a 2-year 0% APR installment loan, and lets users get a new iPhone every year. Apple Upgrade is a broader subscription-style program for multiple Apple devices, has 24- or 36-month lease terms, does not include AppleCare, and is replacing iUP for new customers.
FAQ by nexos.ai, reviewed by Cybernews staff.
