Apple today replaced its iPhone Upgrade Program with a new leasing option called Apple Upgrade, developed in partnership with Klarna. The program is available only in the United States and will launch on July 28. Customers can lease iPhones, iPads, Macs and Apple Watches for 24 months for iPhones and Apple Watches and 36 months for iPads and Macs. Leased devices are unlocked at checkout, and users must select a carrier from AT&T, Verizon or T-Mobile. The lease requires a postpaid plan; prepaid plans are not eligible. Ownership does not transfer at the end of the lease unless the final payment is made, and devices must be returned if the customer chooses to upgrade. Klarna does not impose late fees if a payment is missed; the amount is rolled into the next month’s payment. Missing three consecutive payments triggers automatic lease termination and the full remaining balance becomes due immediately, with Klarna subtracting the device’s residual value if the phone is returned. The arrangement does not restrict iOS functionality or lock apps, and it does not affect credit scores directly, though missed payments may impact credit. AppleCare+ is not included and must be purchased separately, with monthly rates ranging from $9.99 to $13.99 for iPhone coverage or $19.99 for AppleCare One covering three devices. Damage fees apply when returning a device, and AppleCare+ reduces the cost to the service fee. Certain products, including the iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, A16 iPad and Studio Display, are ineligible for the lease. The program cannot be used for education discounts, refurbished devices, or trade‑ins that are applied up front. Klarna does not accept American Express, Chase, or Capital One credit cards, but the Apple Card can be used for payments. Existing iPhone Upgrade Program members may remain in the program until their next upgrade cycle. Bloomberg’s Mark Gurman reported that the launch will begin on Tuesday, July 28, and that Apple will discontinue the iPhone Upgrade Program sign‑ups on the same day. The company has not indicated plans to expand the service beyond the United States.