Apple Replaces iPhone Upgrade Program With $17.99-a-Month Device Leasing

Q: Could Apple's new leasing program secretly cost you more by stripping away essential perks like AppleCare+?

Yes—Apple’s new leasing plan could end up costing some customers more overall, even if the monthly payment looks lower. The main reason is that AppleCare+ reportedly is not bundled into Apple Upgrade, unlike Apple’s older iPhone Upgrade Program, which included AppleCare+ with Theft and Loss in the monthly price. Under the new setup, customers would likely need to buy AppleCare+ separately if they want the same protection. Apple says AppleCare+ can still be added after purchase, but that becomes an extra charge rather than part of the advertised payment. That means the headline monthly price may understate the real cost of using the device with comparable coverage. A lower lease payment can look attractive, but once AppleCare+ is added—and especially if a customer wants theft-and-loss coverage on an iPhone—the monthly total may narrow the gap or even exceed other options. The lease structure also matters. Reports say Apple Upgrade is designed more like a lease than a standard 0% installment loan. At the end of the term, customers may have to return the device, pay an added amount to keep it, or upgrade into a new agreement. So the true cost depends on what happens at the end, not just the monthly figure. The bottom line is that Apple Upgrade may be cheaper for customers who just want lower upfront payments and are comfortable going without bundled protection. But for buyers who want AppleCare+ and eventual ownership, it could be less of a bargain than it first appears.

3 articles · Updated · 9to5Mac · Jul 28

Apple has ended its iPhone Upgrade Program in the U.S. as it rolls out Apple Upgrade, a new leasing plan spanning iPhone, iPad, Apple Watch and Mac.
Current iPhone Upgrade Program users can no longer get their next phone through that plan when eligible; Apple says they must switch to Apple Upgrade, Apple Card Monthly Installments, carrier financing or an outright purchase.
The change also alters ownership terms: the old program was a 24-month Citizens One installment loan that let users keep the device after payoff, while the new plan is a Klarna lease with options to upgrade, buy out or return it.
AppleCare is no longer bundled into the monthly price, marking another break from the program Apple introduced with the iPhone 6s lineup in 2015.