--- service: "Publicasta" schema_version: "1.0" article_id: 220 title: "Should you use Apple Upgrade or buy your next iPhone? Read the lease first" language: "en" default_language: "en" canonical_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29?lang=en" json_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29.json?lang=en" api_url: "https://publicasta.com/api/public/v1/channels/should_you_buy/articles/should_you_buy_apple_upgrade_lease_2026_07_29?lang=en" channel_url: "https://publicasta.com/api/public/v1/channels/should_you_buy" channel_articles: "https://publicasta.com/api/public/v1/channels/should_you_buy/articles" search_url: "https://publicasta.com/api/public/v1/search" documentation_url: "https://publicasta.com/api-docs#reading-publicasta" openapi_url: "https://publicasta.com/api-docs/openapi.json" published_at: "2026-07-29T06:40:13+00:00" updated_at: "2026-07-29T06:40:13+00:00" translations: - language: "ar" html_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29?lang=ar" markdown_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29.md?lang=ar" json_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29.json?lang=ar" - language: "de" html_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29?lang=de" markdown_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29.md?lang=de" json_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29.json?lang=de" - language: "en" html_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29?lang=en" markdown_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29.md?lang=en" json_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29.json?lang=en" - language: "es" html_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29?lang=es" markdown_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29.md?lang=es" json_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29.json?lang=es" - language: "fr" html_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29?lang=fr" markdown_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29.md?lang=fr" json_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29.json?lang=fr" - language: "pl" html_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29?lang=pl" markdown_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29.md?lang=pl" json_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29.json?lang=pl" - language: "ru" html_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29?lang=ru" markdown_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29.md?lang=ru" json_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29.json?lang=ru" - language: "zh" html_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29?lang=zh" markdown_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29.md?lang=zh" json_url: "https://publicasta.com/should_you_buy/should_you_buy_apple_upgrade_lease_2026_07_29.json?lang=zh" --- # Should you use Apple Upgrade or buy your next iPhone? Read the lease first > Apple’s new Klarna-backed program lowers the monthly number, but it changes the ownership question. It works for frequent upgraders, not long-term owners. Apple Upgrade looks harmless at first because the monthly number is small. That is the point. Apple’s new U.S. leasing program, provided by Klarna, replaces the old iPhone Upgrade Program for new signups and expands the idea beyond iPhone to iPad, Mac and Apple Watch. The catch is simple: this is not the old path to ownership with a friendlier name. It is a lease. ![Apple devices compared as lease payments versus ownership and resale choices](https://publicasta.com/storage/projects/13/pages/220/2026/07/93d414bd-4f7f-4fec-b53b-6db75944dbf4.webp) The right question is not “Can I afford $17.99 or $34.99 a month?” Most people can talk themselves into that. The better question is: “What do I want to happen at the end?” If your honest answer is “upgrade and return the device,” Apple Upgrade may fit. If your answer is “keep it for years,” “sell it myself,” “buy refurbished,” or “stay on a cheap prepaid plan,” the low monthly price can be a distraction. Apple’s own page is clear about the structure. Apple Upgrade lets U.S. customers lease eligible iPhone, iPad, Mac and Apple Watch models. The lease terms are 12 or 24 months for iPhone and Apple Watch, and 24 or 36 months for iPad and Mac. Klarna provides the lease. At the end, you can upgrade and return the current device, leave the program and return it, or buy the device outright through Klarna with a one-time purchase option payment. That last phrase is the ownership line. Apple’s FAQ says you do not own the device at the end of the lease term. If you want to keep it, you pay the purchase option fee. Apple says that if you buy the device, the purchase option fee is the original list price minus lease payments already made minus remaining discounts or trade-in credit, excluding tax and damage fees. In other words, buying out should not cost more than list price before tax and damage charges. But you still need to have the buyout cash when the decision arrives. There is also a six-month decision period after the initial lease term. During that period Klarna keeps charging your monthly payment until you choose an option. If a trade-in credit lowered the original payment, Apple says the monthly payment can increase during that extension because the credit applies only to the initial lease term. If you still do nothing, Klarna charges the purchase option fee and you buy the device outright. The old iPhone Upgrade Program was different in a way buyers will feel. It was a 24-month installment loan through Citizens One, with AppleCare+ built into the monthly price and a familiar annual upgrade path after enough payments. Apple says that program and iPhone Payments are ending in the United States for new upgrade choices. Existing members can keep paying their current loan for now, then choose Apple Upgrade, Apple Card Monthly Installments, carrier financing or a one-time purchase when they move to the next iPhone. The new program is wider and more flexible by device category, but less like ownership by default. AppleCare is no longer included in the lease payment. Apple says AppleCare coverage can be added separately, and that it can make returns easier by reducing damage costs. MacRumors, checking the fine print, also notes that AppleCare+ for iPhone is a separate monthly charge, while AppleCare One may make sense for households with several covered devices. The carrier rule is another deal-breaker for some people. Apple says that if you lease an iPhone through Apple Upgrade, you need to connect to AT&T, T-Mobile or Verizon when enrolling. MacRumors reports that leased iPhones are unlocked, and that switching later or adding another eSIM is possible, but the checkout requirement still matters. If you use an MVNO or prepaid plan because it saves serious money, do not compare only hardware payments. A cheap lease plus a more expensive carrier plan can lose to buying the phone and keeping your plan. Missed payments are not just a moral warning in the small print. MacRumors reports that a missed payment rolls into the next month and there are no late fees, but three missed payments in a row can trigger automatic lease termination, with the balance due. If the device is not returned or the balance is not paid, the account can go to collections. Apple also says the lease application uses a soft credit check. Soft check is nice; collections are not. The arithmetic is not always ugly. A Hacker News thread about the replacement reached 161 points and 306 comments when checked, and many readers did real math rather than just complain about “subscription phones.” One example from the thread compared an iPhone 17 Pro Max at $1,199 list price with a $34.99 monthly Apple Upgrade payment over 24 months. That is $839.76 before tax, leaving roughly the remainder as a buyout if the buyer wants to keep it. The point is not that this exact example fits every model or tax rate. The point is that Apple Upgrade can behave like a low-payment loan with a balloon payment, as long as you deliberately plan to buy out. But that is also the danger. A balloon payment you planned for is a financing tool. A balloon payment you forgot about is a trap. And if you never plan to buy out, you are paying for access and convenience, not ownership. Who should consider Apple Upgrade? First, people who replace their iPhone every 12 or 24 months and already treat old phones as trade-in inventory. If you never sell privately, do not want the hassle, and always want a current model, returning the phone may be cleaner than managing resale. Second, households or small businesses that prefer predictable operating costs and can keep devices protected. Third, people who value Apple Store logistics enough to pay for them. Who should skip it? Long-term owners. If you keep a phone four to six years, the best value is usually buying, replacing the battery when needed, and using the device until it stops serving you. Refurbished buyers should skip it too, because Apple Upgrade does not cover refurbished devices. Education buyers should check carefully because discounted education pricing is not available through the program. Prepaid and MVNO users should be especially cautious because carrier plan savings can dwarf small differences in device financing. The Mac case is even more personal. Leasing a MacBook for 24 or 36 months can make sense for a freelancer or small business that refreshes work machines on a schedule and understands the tax and accounting treatment. It is much weaker for someone who keeps a Mac for six or seven years. Apple laptops often retain value and remain useful for a long time. Giving up ownership and resale value should buy you something real, not just a lower number at checkout. Compare Apple Upgrade against five alternatives before enrolling. Apple Card Monthly Installments still matter for Apple Card holders because the device is owned outright and the financing can be interest-free. Apple Trade In is simpler if you already own a device and want a known credit. Apple Certified Refurbished can be the better deal if you are happy one generation behind. Carrier deals can look cheap, but many require expensive unlimited plans and long bill-credit periods. The used market often pays more than trade-in, if you can tolerate the work and risk. Use this checklist before you sign. How many years do you normally keep the device? Are you certain you will upgrade, return or buy out at the end? Do you have cash available for the buyout if you change your mind? Will the iPhone carrier requirement raise your monthly service bill? Are you adding AppleCare, and if not, can you absorb damage fees? Would refurbished or a one-generation-old model satisfy the same need? Are you looking at total cost, or only the monthly payment? The verdict: Apple Upgrade is worth considering for frequent upgraders who already live inside Apple’s upgrade cycle and want a tidy return path. It is not a bargain for people who keep devices, buy used, use cheap carriers or care about ownership. Apple did not make devices cheaper. It made the first number smaller and moved the real decision to the end of the lease.