If you’re in the United States, the Apple Upgrade lease program is starting to look like an attractive option for grabbing a new iPhone, iPad or Mac, or an Apple Watch.
With iPhone, Mac and iPad prices all rising this year, the idea of buying outright and then upgrading again a couple of years later doesn’t offer good value for money.
However, if you’re the type of person who still loves to have access to all of the latest features, then the Apple Upgrade program may be for you. If enables you to get a new Apple device and essentially lease it for 12-24 months – or up to 36 months for a MacBook Pro and iPad Pro.
At the end of that period you have three choices: Hand it back, pay off the remaining balance to own the device outright, or start the upgrade cycle again with a new device.
Here are ten things to know prior to entering the Apple Upgrade program.
Yes, the iPhone Duo is available on Apple Upgrade
The iPhone Duo was finally announced at Apple’s September 9 event. Given there are concerns about how many Apple has been able to make, it wasn’t obvious whether it was going to be made available here. However, it is Apple Upgrade eligible. If you’re tempted by a foldable but aren’t sure whether to go the whole hog and spend $,2000 on buying one, Apple Upgrade is a great option. That way, after a year you can trade it, or get the next-generation model.
You can buy at the end of the lease
It’s not necessarily an endless rental here. At the end of your term, you can turn your lease payments into money paid towards owning the device. Depending on the device you lease, there’ll be an option to buy the rest of the device at no greater cost than the original value of the device.
It costs more for a shorter-term lease
If you want a fresh iPhone every year, for example, the 12-month lease is much more expensive than the 24-month offering.
For example, the new iPhone Duo costs from $83 per month on a 12-month term. If you’re happy to keep the phone for two years, that payment drops to $58.
You can trade-in to reduce monthly payments
Apple’s trade-in program could reduce your monthly payments to next to nothing. When valuing my iPhone 16 Pro Max at $610, it eliminated the cost of leasing an iPhone 18 Pro 256GB for 12 months. However, beware, this is only £35 a month lease to begin with. Which is $410 over the course of the year. You’re losing out on the deal here and won’t own any iPhone at the end of it.
Your next upgrade might cost more
Leasing an iPhone 18 Pro for $50 a month for twelve months doesn’t entitle you to get the next-gen model at the same cost automatically. The chances are your next Apple Upgrade bill for next-year’s model will be higher.
You can upgrade mid-cycle
Say you’ve taken out a 24-month lease on an iPhone 18 Pro Max, but are wowed by next year’s rumoured anniversary model and just have to have it, there’s an avenue for doing just that.
Apple says: “You may have the option to upgrade to a new device by entering into a new lease agreement and returning your prior device. If you upgrade, your new monthly payments may be greater than your prior monthly payments.”
There’s a big charge for early termination
This isn’t something you can get out of easily. In the terms and conditions, Apple says: “You may incur a substantial charge up to the amount of your remaining lease payments if you terminate your lease before the end of your initial lease term,” So be sure.
You will need Apple Care too
Apple Care is not included in the lease. So Apple Care+ with theft and loss protection will add an extra $15 a month for an iPhone or $5 for an Apple Watch.
“Insurance is not included in your lease, and you may incur damage fees if the device is lost, stolen, or not returned in the condition required by the lease,” Apple says.
You need to be approved
“Lease approval is subject to eligibility and is based on creditworthiness,” Apple says. The approval and credit line is handled by the third-party company Klarna.
Apple Card installments might be a better option
If you have an Apple Card credit card, then Apple hardware is eligible for interest-free installments that spread the cost over 6-24 months. There’s the bonus of 3% Daily Cash back on those items too. There’s no path to an upgrade, as you will own the device. However, if breaking down the cost is your aim, this is a good option.
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