Apple is reportedly preparing to launch “Apple Upgrade,” a unified hardware subscription service covering iPhones, iPads, Macs, and Apple Watches, according to reports from Bloomberg.
Developed in direct partnership with financial technology firm Klarna Group Plc, the subscription will initially debut exclusively within the United States market across both physical Apple Store retail locations and the official online Apple Store platform.
Similar to standard device leasing models, “Apple Upgrade” will allow consumers to settle their device balance early during the contract, transition to a newer model prior to agreement expiration, or retain full ownership of the hardware at the end of the rental term. Specific scenarios may incur additional fees. The service will enforce distinct contract lengths depending on product categories: agreements for iPhones and Apple Watches will carry a 24-month duration, whereas lease periods for Macs and iPads will extend to 36 months. All subscription applications will require prior credit approval, and users can return the hardware at contract completion.
Reports indicate that Apple plans to market the “Apple Upgrade” program as an affordable alternative offering lower monthly payments than conventional device financing programs. To consolidate its consumer purchasing options, the company is expected to phase out its long-standing iPhone Upgrade Program alongside traditional financing routes to make room for this new all-in-one subscription model.
However, several distinct parameters differentiate this new offer from past programs. Unlike the previous iPhone Upgrade Program, “Apple Upgrade” will not include AppleCare coverage. Furthermore, entry-level hardware products—such as the Apple Watch SE 3, base iPad model, standard iPhone 16, and MacBook Neo—will be excluded from enrollment. Enterprise accounts and student users will likewise be ineligible to participate in the subscription program.
While rumors surrounding an Apple hardware subscription service have circulated for years—with reports indicating the project was internally shelved in late 2024—the upcoming debut follows recent price adjustments across Apple’s product lineup. These price increases stem from elevated dynamic random-access memory (DRAM) costs, driven by high global market demand for hardware chips dedicated to artificial intelligence applications.
Apple Partnering With Klarna For iPhone And Mac Subscription Plan
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