Apple has ended its classic iPhone Upgrade Program and introduced a new Apple Upgrade leasing system in collaboration with Klarna. This program, valid in the United States, allows users to acquire devices such as iPhones, iPads, Macs, and Apple Watches with more favorable payment terms.

However, there are some important technical details that consumers should pay attention to, such as device ownership and payment plan restrictions. The new system, while only applicable to postpaid line owners, includes critical rules ensuring that ownership of the devices remains with Apple and Klarna for the duration of the lease.

Payment and Ownership Processes Defined

The new Apple Upgrade system is based on a lease model where users do not directly assume ownership of the device. While monthly payments continue throughout the lease term, the device owner legally remains the leasing organization. Users who wish to take full ownership of the device at the end of the lease term must settle the remaining balance after deducting the total amount paid from the initial device price.

Although no random late payment penalty is applied in case of missed payments, the account is transferred directly to the collection unit if three installments are not paid in a row.

Payment Methods and Restrictions Apply

As per agreement with Klarna, the system does not accept credit card payments. Users are required to make payments via debit card or directly from their bank account.

Also, educational discounts or refurbished product options are not available on devices purchased through the Apple Upgrade system.

Although the system offers a pre-evaluation process that does not negatively affect credit scores, participants must have a postpaid operator plan. Even if devices are sold without carrier lock, it is still mandatory to select a carrier during the purchase phase.

Damage and Technical Support Rules are Being Established

The process of assessing damages to devices is entirely managed by Klarna. Users without an AppleCare+ subscription are responsible for paying all damage costs identified during device return.

Those with AppleCare+ can benefit from this process by paying only the specified service fees.

Some newer generation devices are currently not included in this program and are excluded from the leasing scope.

New System Replaces Old Program

Existing iPhone Upgrade Program members can retain their rights until the next upgrade period.

However, they are expected to switch to the new Klarna-supported Apple Upgrade system when they make a new device upgrade. This transition process brings about a fundamental change in how users acquire devices.

Do you think Apple’s shift from its classic upgrade program to a leasing model is a more advantageous option for users, or does it increase costs? You can share your opinions with us in the comments section below.