Apple iPhone Leasing Program Offers New Monthly Payment Option

The Apple iPhone leasing program lets eligible U.S. customers lease iPhones through monthly payments, with options to return, buy, or upgrade

Apple is introducing a new way for U.S. customers to access its devices through monthly payments. The Apple iPhone leasing program will allow eligible customers to lease an iPhone for up to two years, with pricing starting at $17.99 per month, according to the announcement. The new Apple Upgrade initiative is being offered in partnership with Klarna and is expected to be available through Apple retail stores and its online store.

Flexible Options for Apple Customers

Customers will undergo a soft credit check before receiving available lease options. iPhones and Apple Watches can be leased for up to two years, while Macs and iPads will have longer lease terms of up to three years.

At the end of a 24-month iPhone lease, customers can return the device, make an additional payment to purchase it, or upgrade to a newer model. Premium devices will come with higher monthly payments. For example, the iPhone 17 Pro is listed at $31.99 per month for a two-year term or $45.99 per month for one year under the announced program.

Customers can learn more about Apple's existing financing options through its official Apple financing page and explore Apple's current iPhone Upgrade Program.

Apple Targets More Flexible Device Payments

The Apple iPhone leasing program comes as the company faces rising component costs and expectations of higher prices for some future devices. A lower monthly payment could make premium products more appealing to consumers who may be reluctant to pay a larger upfront price.

The iPhone leasing program also puts Apple in more direct competition with wireless carriers that already offer installment plans and trade-in incentives. Klarna's involvement could further expand flexible payment options for Apple customers, building on the companies' existing payment relationship. More information about Klarna's Apple payment options is available on the Klarna Apple store.

With device prices under pressure from rising component costs, the iPhone leasing program could help Apple encourage more frequent upgrades while giving customers another way to manage the cost of its products. 

FAQs

1. What is Apple's new leasing program?
Apple Upgrade is a new payment option that allows eligible U.S. customers to lease selected Apple devices through monthly payments.

2. How long can an iPhone be leased?
The announced program offers iPhone lease terms of up to two years.

3. What happens after the lease ends?
Customers can return the device, purchase it with an additional payment, or upgrade to a newer device.

4. Will all iPhone models be available?
No. Availability and pricing will vary by model, and some entry-level products may not be included.

5. Why is Apple introducing this option?
The program gives customers a lower monthly payment option and could help Apple encourage more regular device upgrades.