Apple has officially launched Apple Upgrade, a new leasing programme that allows customers in the United States to access the latest iPhones, Macs, iPads, and Apple Watches through monthly payments. Developed in partnership with Klarna, the service replaces both the iPhone Upgrade Program and iPhone Payments in the US, while expanding to cover more of the brand’s hardware lineup.
How Apple Upgrade Works
Apple describes the programme as offering lower monthly payments than traditional financing, as customers are leasing rather than purchasing the device outright. Depending on the product, lease terms range from 12 to 36 months, after which customers can either upgrade to a newer model, purchase the device with a one-time payment, or simply return it.
Monthly prices start from US$11.99 (~RM49) for selected Apple Watch and iPad models, US$17.99 (~RM74) for eligible iPhones, and US$24.99 (~RM102) for Macs. Customers can also lower their monthly payments by trading in an eligible device, while Apple Card users receive 3% Daily Cash on lease payments.
Unlike the previous iPhone Upgrade Program, AppleCare+ is no longer bundled into the monthly payment and must be purchased separately if customers want accidental damage or extended warranty coverage. Approval for Apple Upgrade also requires a soft credit check performed by Klarna, which does not affect an applicant’s credit score.
What Happens To Existing iPhone Upgrade Program Customers?
Existing customers enrolled in the iPhone Upgrade Program will be able to transition to Apple Upgrade once they become eligible for a new device. Alternatively, they can choose to finance their next purchase through Apple Card Monthly Installments, purchase a device outright, or use carrier financing instead.
The new programme also differs from its predecessor in another significant way. While the iPhone Upgrade Program was effectively an instalment plan that led to ownership of the device, Apple Upgrade is a leasing service, meaning customers do not automatically own the product unless they choose to make a final purchase payment at the end of the lease.
Will Apple Upgrade Come To Malaysia?
Apple has not shared any plans to introduce Apple Upgrade outside the United States. As such, customers in Malaysia will need to continue relying on existing financing options such as Apple Trade In, bank instalment plans, authorised reseller promotions, and telco device bundles. That said, the US rollout serves as a useful reference point should Apple decide to expand the programme globally in the future.
Whether leasing is a viable alternative to owning an Apple product largely depends on buying habits. This approach could offer lower monthly payments and a more straightforward upgrade path without having to worry about selling an old device. On the other hand, purchases or conventional instalment plans offer better long-term value, as they retain ownership of the hardware and can continue using or reselling it after it has been fully paid off.
(Source: Apple [official website])
