Apple’s New Klarna-Powered Leases Give You Temporary Access to the Latest iPhone for Half of MSRP

On Tuesday, Apple launched Apple Upgrade, a new program that allows US customers to lease iPhones, Apple Watches, iPads, and Macs through Klarna. The service now appears in Apple’s online store, the Apple Store app, and physical Apple Stores throughout the country.

Apple Upgrade offers customers a monthly payment plan instead of a standard purchase.

Starting monthly prices are as follows, though they can go up depending on specs and lease terms:

• $17.99 for iPhone 17e

• $22.99 for iPhone 17

• $31.99 for iPhone 17 Pro

• $11.99 for Apple Watch

• $11.99 for iPad

• $24.99 for Mac

Apple also says customers can use the trade-in value of their current devices to reduce their payments.

Don’t get confused: Apple Upgrade is not the same as a traditional EMI (or equated monthly installment, in which you essentially take out a loan for the product’s purchase price, minus a down payment). It works more like a lease, so Apple and Klarna expect you to return the device, upgrade to a new one, or pay a buyout amount at the end of the term.

Credit: Apple

The program can comprise 12 or 24 months for iPhone and Apple Watch, and 24 or 36 months for iPad and Mac. Much like a car, customers can choose to return the device, start a new lease on the latest model, or pay the remaining purchase price to buy it outright at the end of the lease. Apple says customers can also buy out the lease early for a fee.

Let’s do some math here. Apple lists the 256GB iPhone 17 at $22.99 per month on a 24-month Apple Upgrade lease, and $32.99 per month on a 12-month lease. This same model goes for $799 retail at any Apple Store in the US.

The lease totals add up to $395.88 for 12 months and $551.76 for 24 months. That means you’ll be paying just under 50% of MSRP in the 12-month plan and roughly 70% of MSRP for the 24-month plan—but you won’t even own the phone.

Apple says the program requires US residency, a valid US credit or debit card, a Social Security number, a Klarna account, and a soft credit check. Apple also says AppleCare is separate from the monthly lease price. Devices must be returned in good condition; damage or nonpayment will incur extra charges.

The launch also ends new sign-ups for the iPhone Upgrade Program in the US.