Our top pick: Lease through Apple Upgrade if you upgrade often
Apple’s new iPhone leasing program, called Apple Upgrade, is a hardware lease where you pay monthly to use an iPhone, Mac, iPad, or Apple Watch for a fixed term, then either upgrade, return the device, or buy it out at the end instead of owning it outright from day one. For most people who replace their iPhone every one to two years, Apple Upgrade is the smarter default. You get predictable monthly iPhone payments, built‑in upgrade cycles, and the option to walk away without being stuck with old hardware you no longer want. The program replaces the older financing‑style iPhone Upgrade Program for new customers and extends leasing to almost all Apple devices, so you can treat your tech more like a car lease than a long‑term purchase.
| Spec | Apple Upgrade (lease) | Traditional purchase/financing |
|---|---|---|
| Ownership during term | Klarna owns the device; you pay to use it | You own the device as you pay it off or immediately if buying outright |
| End of term options | Upgrade, return, or buy out the device | Keep the phone; optionally resell or trade it |
| Typical iPhone term | 12 or 24 months, from USD 17.99 (approx. RM83) per month | Often 24 months of financing, or full payment upfront |
| Total cost if you buy out | Monthly rentals deducted from MSRP; total never exceeds retail price | You pay the retail price plus any interest if financed |
How Apple Upgrade works: terms, pricing, and eligibility
Apple Upgrade lets eligible customers lease iPhones, Macs, iPads, and Apple Watches through monthly payments processed by Klarna, with applications using a soft credit inquiry and usually no down payment. iPhones and Apple Watches can be leased for 12 or 24 months, starting at USD 17.99 (approx. RM83) per month for iPhones and USD 11.99 (approx. RM55) for Apple Watches. iPads and Macs offer 24‑ or 36‑month leases, from USD 11.99 (approx. RM55) for iPads and USD 24.99 (approx. RM116) for Macs. At the end of your term, you choose to upgrade, return, or purchase the device; if you buy it, your rental payments are deducted from the original MSRP with no added interest, so you never pay more than retail. Some budget hardware, including iPhone 16, iPhone 16 Plus, Apple Watch SE, the base iPad, and Mac mini, is excluded from the program.
Lease vs buy iPhone: which gives better value for you?
The key difference in the lease vs buy iPhone decision is ownership. Under Apple Upgrade, you are paying to use the phone; Klarna keeps ownership unless you choose a buyout at the end. Traditional purchases or installment plans finance ownership from day one, and once you finish payments, the iPhone is yours to keep or resell. Leasing shines if you reliably upgrade every year or two, because your monthly iPhone payments map neatly to your upgrade rhythm and you avoid the hassle of reselling older devices. If you usually keep an iPhone for four or five years, outright purchase or standard financing will deliver better long‑term value, since spreading the cost over a longer usage period makes each year cheaper. According to Apple, "If a customer decides to keep the hardware when the lease expires, total monthly rental payments are deducted directly from the original MSRP without added interest".
Who Apple Upgrade is best for (and when to avoid it)
Apple Upgrade is built for frequent upgraders who want predictable monthly tech expenses across iPhone, Mac, iPad, and Apple Watch rather than tying cash up in long‑term ownership. You can enroll through Apple’s website, the Apple Store app, or physical stores, and you may combine the lease with trade‑in credits, Apple Card Monthly Installments, or carrier financing, though iPhone leases still require you to pick a major carrier at checkout while keeping the phone unlocked. Leasing feels like a car lease: at the end of 12, 24, or up to 36 months, you can roll into a newer model, return the device, or pay the buyout if you realise you want to keep it. However, AppleCare+ is no longer bundled, so you should budget for separate protection, and you must be comfortable not owning the device during the term.
Buy if / Skip if
- Buy the Apple Upgrade program if you replace your iPhone every one to two years and want easy, predictable monthly iPhone payments instead of large upfront costs.
- Skip the Apple Upgrade program if you typically keep an iPhone, Mac, iPad, or Apple Watch for four to five years and prioritise long-term ownership value over frequent upgrades.
- Buy the Apple Upgrade program if you like treating your tech like a lease, regularly moving to the latest hardware without worrying about reselling older devices.
- Skip the Apple Upgrade program if you prefer bundled protection, because AppleCare+ is no longer included and must be purchased separately.
- Buy the Apple Upgrade program if you want to standardise your whole Apple setup—iPhone, Mac, iPad, and Apple Watch—on predictable monthly leasing across devices.
- Skip the Apple Upgrade program if you’re eyeing excluded budget models like iPhone 16, iPhone 16 Plus, Apple Watch SE, or the base iPad that are not eligible for leasing.
