Apple Upgrade: a new instalment option with Klarna
Apple Upgrade arrives as a reported buy-now, pay-later option for customers who want to spread the cost of an iPhone, iPad, Mac or Apple Watch. Bloomberg’s Mark Gurman says the US rollout is scheduled for July 28 and will use Klarna to manage financing both online and in retail stores.
How the payment plans could work
According to the report, payment terms will vary by device to reflect typical upgrade cycles and price points. New iPhones and Apple Watch models could be offered on 24-month plans, matching how often many users swap devices. iPads and Macs may qualify for longer, 36-month arrangements to account for their longer lifespans and higher prices.
- Flexibility: buyers may be able to pay off the balance early.
- Upgrade options: the program might let customers switch to a newer model before the term ends.
- End-of-term ownership: users could keep the device once payments are complete.
What might be excluded
Gurman notes that lower-cost devices could be left out of Apple Upgrade. Possible exclusions include the Apple Watch SE, the entry-level iPad, the iPhone 16 base model, and the MacBook Neo. That suggests Apple will tailor the financing to higher-priced items where instalment plans are most useful.
iPhone Upgrade Program replacement and AppleCare
Apple’s existing iPhone Upgrade Program, which bundles AppleCare+ into monthly payments, is reportedly set to be phased out when Apple Upgrade launches. New sign-ups for the old iPhone Upgrade Program are expected to stop once the Klarna-powered option goes live.
Unlike the current iPhone Upgrade Program, Apple Upgrade reportedly will not include AppleCare+ by default. Customers who want coverage may need to add AppleCare separately and pay for it on top of the device instalments.
Apple has not publicly confirmed these plans, and details such as exact pricing, eligibility, and how AppleCare would be billed remain unclear. The Bloomberg report is the primary source for the timing and broad structure of the proposed program.
