Apple just made it official: the future of your devices is perpetual rental. The company launched its "Apple Upgrade" leasing program today, partnering with buy-now-pay-later giant Klarna to offer iPhones, Macs, iPads, and Apple Watches on monthly leases that ensure you never truly own the hardware — you just keep paying until you stop, at which point they take it back.
The program lands exactly one month after Apple raised iPad and Mac prices by at least $100, with some models jumping more than $1,000, citing a global memory crunch. Analysts expect iPhone price hikes next. The leasing model conveniently shifts attention from eye-popping sticker prices to a more digestible monthly number. As IDC senior research director Nabila Popal told CNBC, "most of Apple's consumers... are buying devices on installment plans or trade-ins, so we can expect to see much more aggressive offers."
Here's how the trap works. iPhone and Apple Watch leases run 12 or 24 months; Mac and iPad leases run 24 or 36 months. An iPhone 17e starts at $17.99/month. A MacBook Pro will run you $38.99/month for 36 months — that's $1,403.64 over three years on a $1,999 machine, and you still don't own it. At the end of the lease, you have three choices: upgrade to a new device, buy your current device outright by paying the difference between what you've already paid and the list price, or return it and walk away. Do nothing, and the lease converts to month-to-month for up to six months — payments may increase — after which you're charged the full purchase price. 9to5Mac noted plainly: "you also never own" the device unless you actively exercise the purchase option.
CNBC framed the program as a "much cheaper leasing option" than Apple's previous iPhone Upgrade Program, which cost over $42/month through Citizens Bank and included AppleCare. Apple confirmed it discontinued that program in the U.S. What CNBC buried: the old program was a financing plan toward ownership. This is a lease. There is a difference, and it matters.
Apple has a clear business incentive. The average iPhone replacement cycle has stretched to nearly four years, according to Bernstein estimates. Leasing encourages faster turnover — and Apple gets recurring revenue that smooths out the seasonal boom-and-bust of device launches. Morgan Stanley estimates Apple may need to raise the iPhone 18 Pro by roughly $200 to preserve margins. A foldable iPhone expected alongside the iPhone 18 Pro could hit $2,500. The higher prices climb, the more attractive a lease looks — and the more Americans are nudged away from owning anything.
Klarna, the Swedish buy-now-pay-lender backing the program, handles credit approvals and payments. There's a soft credit check that won't ding your score. Klarna won't charge late fees but will terminate your lease after three months of missed payments — meaning they take the device back. AppleCare isn't included; that costs extra. iPhone leases require a postpaid plan with AT&T, T-Mobile, or Verizon — no prepaid allowed.
The old American model was simple: you worked, you saved, you bought a thing, it was yours. Apple Upgrade is the new model: you rent, you pay forever, and the moment you stop, the thing disappears. The only question is how many Americans will trade ownership for the convenience of a lower monthly bill — and whether they'll realize what they gave up only when it's gone.
