Apple plans to lease iPhones for $17.99 a month through partnership with Klarna - CNBC

Apple announced a new leasing program called Upgrade on Tuesday, July 28, 2026, allowing U.S. customers to lease an iPhone for one or two years starting at $17.99 per month.
The program is a partnership with Klarna, a buy now, pay later lender, and will be available at Apple's physical retail stores and online, with customers required to pass a soft credit check.
Beyond iPhones, the program offers leases on Apple Watches, plus two- or three-year lease options for Macs and iPads, though some entry-level devices like the iPhone 16 and MacBook Neo are excluded.
Prices scale with device tier: an unlocked iPhone 17 Pro costs $31.99 monthly over two years or $45.99 over one year, while premium models command higher payments.
The move follows Apple's June price increases on iPad and Mac starting prices by at least $100 (some by over $1,000), citing a global memory crunch, and analysts anticipate iPhone price hikes that leasing could offset by emphasizing lower monthly costs.
Leased devices must be returned after 24 months, though customers can buy them with an additional payment or upgrade; no security deposit is required, and Klarna won't charge late fees but will terminate leases after three months of missed payments. Apple hopes the plan will shorten the roughly four-year iPhone replacement cycle estimated by Bernstein and smooth seasonal sales fluctuations.