Apple is preparing to retire its long-running iPhone Upgrade Program after more than a decade. Reports indicate the company will replace it with a new financing option called Apple Upgrade, which is expected to launch soon. The new program will expand installment payments beyond the iPhone and cover more Apple products.
Current customers will not lose access immediately. Existing participants can continue using the iPhone Upgrade Program until their agreements end. However, new customers will no longer be able to enroll once Apple Upgrade becomes available.
A Program That Changed iPhone Buying
Apple introduced the iPhone Upgrade Program in 2015 to make premium iPhones more affordable through monthly payments. The plan included AppleCare+ with Theft and Loss and allowed customers to trade in their device after 12 months to upgrade to the newest iPhone. Unlike carrier financing, Apple managed the program directly, giving users greater flexibility to choose their preferred mobile network.
Over the years, the program became popular with customers who preferred upgrading every year instead of purchasing a new phone outright.
Apple Upgrade Expands Beyond the iPhone
The new Apple Upgrade plan takes a broader approach. Instead of focusing only on iPhones, it will also support purchases of Macs, iPads, and other Apple hardware. Financing terms will range from 24 to 26 months, depending on the product. Customers will also have the option to upgrade to newer devices before completing the full payment period.
One notable difference is that AppleCare+ will no longer be bundled into the financing plan. Customers who want extended warranty coverage will need to purchase it separately.
Klarna Becomes Apple’s New Financing Partner
Apple is also changing its lending partner. The iPhone Upgrade Program relied on Citizens One in the United States and other regional financial providers. Under the new system, Klarna will handle financing.
Because Klarna operates in 26 countries, Apple could expand the new financing service more easily into additional international markets. The broader global presence may simplify future rollouts while giving customers in more regions access to Apple’s latest payment option.
