Remember the days of saving up to buy a new iPhone outright, or being locked into a rigid carrier contract? Those days are rapidly fading. Today, Apple officially launched its U.S.-exclusive Apple Upgrade program, allowing customers to lease iPhones and other flagship devices for as little as $17.99 per month.

This bold initiative shifts hardware ownership firmly into the subscription era. Interestingly, while Apple slaps its name on the service, Swedish fintech giant Klarna handles all the leasing and financing logistics. Following Apple's messy breakup with Goldman Sachs, pivoting to Klarna suggests a clear strategy to offload financial risk while keeping the consumer checkout experience completely seamless.

How the Apple Upgrade Program Works

Instead of treating an iPad or Mac like a one-time purchase, think of this as leasing a car. You commit to a reliable monthly payment plan for the duration of the lease. Terms depend entirely on what you take home, with iPhones and Apple Watches running on 24-month cycles, while iPads and Macs demand a 36-month commitment.

At the end of your term, you face three straightforward choices. You can trade in the hardware for the latest model, hand the device back and walk away, or keep it forever. If you fall in love with your leased gadget, paying a final buyout fee directly through the Klarna app transfers full ownership to you.

Let’s break down the math on this new model. Leasing a base iPhone 17 Pro costs $31.99 monthly, totaling about $767 after two years. Compared to buying it outright for $999 or dealing with messy carrier bill credits, leasing offers a much lower barrier to entry if you prefer upgrading frequently.

Complete Pricing Breakdown by Category

These subscription tiers aggressively target Apple's premium lineup. Your exact monthly bill will scale based on the specific device and internal storage configuration you select.

iPhone Subscriptions (24 Months)

• iPhone 17e: Starting at $17.99 per month
• iPhone 17: Starting at $22.99 per month
• iPhone Air: Starting at $28.99 per month
• iPhone 17 Pro: Starting at $31.99 per month
• iPhone 17 Pro Max: Starting at $34.99 per month

Apple Watch Subscriptions (24 Months)

• Apple Watch Series 11: Starting at $11.99 per month
• Apple Watch Ultra 3: Starting at $24.99 per month
• Apple Watch Hermès Series 11: Starting at $40.78 per month
• Apple Watch Hermès Ultra 3: Starting at $47.03 per month

iPad Subscriptions (36 Months)

• iPad mini: Starting at $11.99 per month
• iPad Air: Starting at $15.99 per month
• iPad Pro: Starting at $24.99 per month

Mac Subscriptions (36 Months)

• MacBook Air: Starting at $24.99 per month
• iMac: Starting at $28.99 per month
• MacBook Pro: Starting at $38.99 per month
• Mac Studio: Starting at $48.99 per month

Notable Exclusions and Availability

For now, this leasing luxury is entirely restricted to customers within the United States. Apple hasn't muttered a word about when, or if, an international rollout will happen.

Don't expect every piece of Apple hardware to qualify for this program, either. The company deliberately sidelined several entry-level and previous-generation products to push consumers toward higher-margin current devices.