Renting an iPhone? Apple Upgrade offers leasing option amid rising prices
A customer holds up the new orange-colored iPhone 17 Pro Max smartphone inside an Apple retail store during the official launch of the iPhone 17 and iPhone 17 Pro on September 19, 2025, in Chongqing, China. (Photo by Cheng Xin/Getty Images)
In the face of expected price hikes, Apple is launching a new way for customers to get their hands on new iPhones, Macs, iPads, and more. The tech giant unveiled Tuesday a brand-new leasing program that will let customers pay monthly for a phone they may never own.
Big picture view:
In its announcement, the Cupertino-based company states the new initiative, dubbed Apple Upgrade, would give customers another way to enjoy its products and give them a route to keep getting the latest ones.
How Apple Upgrade works
Shoppers could choose between a 12- and 24-month plan for an iPhone or Watch, while programs for the iPad and Mac would run two or three years, the announcement explained. At the end of the contract, they would have three options: give it back and walk away, upgrade to the latest generation of the device, or buy it with a one-time payment.
Apple did not say how much the payment option would be, whether it would be the difference between the original price and the payments made or another number.
What they're saying:
"At Apple, we put the customer at the center of everything we do," said Karen Rasmussen, Apple’s vice president of the Apple Store online, "and we’re thrilled that Apple Upgrade offers our customers, both online and in-store, a more flexible way to pay for the products they love."
Apple highlighted the lowest payment amounts for its devices. While the list did not say how long a lease was required for that price, other prices included in the release indicate that the longer 24-month plans are significantly cheaper monthly than the single-year ones. (See lists below)
Apple leasing starting costs
- iPhone - $17.99
- Apple Watch - $11.99
- Mac - $24.99
- iPad - $11.99
"Unavoidable" price hikes
Why you should care:
While leasing may mean customers may never actually own the device they are paying for and could result in even more payments for another one when the contract expires, the Upgrade program could provide some shoppers with a way to pay less per month in the short term.
That fact could become more and more important as the price of Apple products is expected to start rising. The RAM shortage that is plaguing the entire technology industry and skyrocketing the costs of computer, smartphone, and other products is threatening to send Apple prices northward as well.
Outgoing CEO Tim Cook recently told the Wall Street Journal that the company, which is worth approximately $5 trillion, has tried to absorb the rising prices of memory, but it is soon going to need to pass some of that cost onto consumers. Cook was quoted as saying, "Unfortunately, price increases are unavoidable."
RELATED: Apple CEO says price hikes are ‘unavoidable’ as rising chip costs squeeze tech giant: report
Dig deeper:
The new Upgrade plan does mean the end of Apple’s iPhone Upgrade Program and iPhone Payments in the United States, the statement noted. Customers already enrolled in the program will be given the option of signing up for a leasing plan when their current deal expires.
The iPhone program will require a customer to use one of three carriers: AT&T, T-Mobile, or Verizon. They would not be allowed to use a pre-paid service.
Klarna will be providing the leasing program. Customers will be able to manage their lease through the financial company’s app. They will be subject to a soft credit inquiry when they sign up for a lease.
The Source: Information for this article was taken from Apple and previous coverage. This story was reported from Orlando.