Apple has partnered with Klarna to launch a new device leasing program called Apple Upgrade in the United States. Announced on July 28, 2026, this initiative allows eligible customers to pay for iPhones, Apple Watches, Macs, and iPads via monthly installments starting as low as $11.99. The leasing options vary by device, with one- and two-year terms available for iPhone and Apple Watch, and two- and three-year leases for Mac and iPad. Upon completing a lease, customers can choose to upgrade to the newest model, buy their current device with a single payment, or return it and exit the program.

This move comes at a time when Apple is dealing with supply chain challenges linked to the global shortage of memory chips, colloquially dubbed “RAMageddon,” which has increased hardware prices across the industry. Apple recently raised prices for its Mac and iPad product lines but left iPhone pricing unchanged. The Apple Upgrade program appears to be designed to help consumers better manage these higher costs by spreading payments over time. Managing the lease is made convenient through Klarna’s app, where customers can track billing schedules and remaining payments.

In introducing the new leasing program, Apple is retiring its existing financing and installment plans in the U.S., such as the iPhone Upgrade Program and iPhone Payments. The official rollout follows reports from Bloomberg indicating Apple’s preparations to offer a lease-to-own option for its devices. Additionally, customers who trade in their existing Apple gadgets through the Apple Trade In program can lower their monthly payments. Users paying with Apple Card also benefit from 3% Daily Cash back on their lease payments.

Apple’s partnership with Klarna for Apple Upgrade reflects a strategic adaptation to ongoing market and supply challenges by providing affordable access to newer technology. By leasing rather than purchasing outright, customers gain flexibility and the option to always use the latest Apple devices. This program combines Apple’s device ecosystem with Klarna’s financing expertise to create an alternative pathway for consumer device ownership amidst price pressures.