Our Pick: Lease Only If You Upgrade Often, Otherwise Buy Outright
Apple Upgrade is a consumer hardware leasing program that lets approved customers pay a fixed monthly fee to use an iPhone, iPad, Mac, or Apple Watch for a set term, then either upgrade, return the device, or pay a purchase fee to keep it.
For most people, the best approach is clear: if you keep your Apple devices for three years or more, you’re better off buying them outright or using a standard installment plan instead of the Apple leasing program. Apple Upgrade is designed for people who want a predictable monthly payment and a new device at the end of each term, but leasing means you pay to use the hardware rather than build equity in something you own. The new Apple Upgrade Klarna partnership offers 12- and 24‑month leases for iPhone and Apple Watch and 24‑ and 36‑month leases for Mac and iPad, so the monthly hit can look small—especially with starting prices like USD 11.99 (approx. RM55) per month for Apple Watch and iPad, and USD 17.99 (approx. RM82) for iPhone. That accessibility is appealing, but long‑term savers should still favor buying.
How Apple Upgrade Leasing Works (and What You Really Get)
Apple Upgrade is a leasing arrangement run through Klarna that covers iPhone, Apple Watch, Mac, and iPad across Apple’s ecosystem. You apply online, in the app, or in-store, and approval involves a soft credit inquiry that Apple says does not affect your credit score. Once approved, you sign a lease for 12 or 24 months for iPhone and Watch, or 24 or 36 months for Mac and iPad. No security deposit is required, and your first payment is due about 30 days after the device ships or is ready for pickup.
According to Apple, “Apple Upgrade offers our customers, both online and in-store, a more flexible way to pay for the products they love.” Practically, that flexibility means you can trade in a current device up front to lower your monthly payment and even earn 3 percent Daily Cash when you pay with Apple Card. At the end of the term, you either return the device and walk away, pay a one‑time fee to keep it, or roll into a new lease and hand the old one back. If you do nothing, Klarna can keep billing you month to month for up to six months—possibly at a higher rate—until the purchase fee is charged.
Leasing vs Buying: Where the Money Goes
The Apple leasing program trades ownership for lower upfront cost and predictable monthly payments. Plans start at USD 11.99 (approx. RM55) per month for Apple Watch and iPad on longer terms, USD 17.99 (approx. RM82) for iPhone, and USD 24.99 (approx. RM113) for Mac on 36‑month leases, though your actual payment depends on model and lease length. That makes premium devices feel more affordable at a time when Apple has raised prices on several products.
However, leasing is not a loan or installment purchase: you do not own the device unless you pay the final purchase fee. You also don’t worry about resale value—at the end you can return the device and walk away—but you’re locked into recurring payments and may face substantial fees if you try to end the lease early or return a damaged device. To decide if leasing beats buying, you must compare your total lease payments (plus any purchase fee if you plan to keep the device) against the price of buying the same product outright, then weigh that against the convenience of regular upgrades and not having to sell used gear yourself.
Who Apple Upgrade is Best For (and Who Should Avoid It)
Apple Upgrade shines if you see your iPhone, Mac, or iPad as a subscription-style tool that you routinely refresh rather than an asset you plan to own. With lease terms up to 36 months, you can spread payments for a Mac or iPad over a longer period, while iPhone and Apple Watch cap out at 24 months. If your priority is always having near‑current hardware without the hassle of selling your old devices, the built‑in upgrade path at the end of each term is attractive. There is one important catch for phone buyers: leased iPhones must be activated with specific carriers and do not support prepaid plans, even though the phone itself remains unlocked.
On the other hand, if you keep your Mac or iPad for many years, prefer modest phones, or like owning devices outright and reselling them later, Apple’s consumer lease is a poorer fit. You’ll be paying for access, not building ownership, and you may be charged extra if the product is lost, damaged, or returned in poor condition. Existing iPhone Upgrade Program customers now have a choice of moving into Apple Upgrade, switching to Apple Card Monthly Installments, buying devices outright, or using carrier financing—options that may suit long‑term owners better than perpetual leasing.
Buy if / Skip if
- Buy the Apple Upgrade lease if you replace your iPhone or Apple Watch every 1–2 years and want a clear upgrade path without worrying about resale.
- Skip the Apple Upgrade lease if you usually keep a Mac or iPad for more than three years and prefer to own devices outright instead of paying indefinitely.
- Buy the Apple Upgrade lease if you value lower upfront payments, like starting from around USD 11.99 (approx. RM55) per month on longer terms, and want to spread costs predictably.
- Skip the Apple Upgrade lease if you rely on prepaid mobile plans, since leased iPhones must be activated with specific carriers and prepaid plans are not supported.
- Buy the Apple Upgrade lease if you want to roll trade‑in credit into your monthly payments and earn 3 percent Daily Cash using Apple Card.
- Skip the Apple Upgrade lease if you dislike long‑term commitments, as ending a lease early can trigger substantial fees and you may pay more by extending month to month.
- Buy the Apple Upgrade lease if you prefer not to manage selling used devices and are comfortable returning hardware at the end of the term instead.
- Skip the Apple Upgrade lease if you are focused on long‑term savings and are willing to handle resale yourself to recover some of a device’s cost.
