Apple officially launched the Apple Upgrade program on Tuesday, July 28, 2026, its new device leasing service developed in partnership with Swedish fintech company Klarna. The service replaces the old iPhone Upgrade Program and significantly expands the subscription model to include not just iPhones but also Macs, iPads, and Apple Watches, representing one of the biggest shifts in Apple's hardware sales strategy since the launch of the Apple Card.
The Apple Upgrade allows eligible customers in the United States to lease devices with monthly payments that vary depending on the product chosen. Starting prices begin at $17.99 per month for the iPhone 17, $11.99 per month for the Apple Watch Series 11, $11.99 per month for the iPad, and $24.99 per month for the MacBook Air. The program offers two contract options: a 12-month term with an annual upgrade option, or a 24-month term with lower monthly payments. At the end of the lease period, customers can return the device and upgrade to a newer model, keep the current device, or simply end the contract.
The partnership with Klarna is a central element of the strategy. The Swedish fintech, globally known for its buy now, pay later (BNPL) services, acts as the exclusive financial partner for the program, managing payments and credit risk. For Klarna, this partnership represents its largest foray into the high-value device leasing market, consolidating its position as one of Europe's leading financial platforms. For Apple, the collaboration allows the company to outsource financial complexity while keeping the focus on customer experience.
The Apple Upgrade launch comes at a particularly significant moment for the company. Just one day earlier, on Monday, July 27, Apple shares rose 1.8% to $342.89 during intraday trading, pushing the company's market capitalization briefly above $5 trillion. This made Apple only the second publicly traded company in history to reach this milestone, following Nvidia, which achieved the same feat in October 2025. Apple had overtaken Nvidia as the world's most valuable company a day earlier, reclaiming the position it lost to the chipmaker in June 2025.
The $5 trillion milestone reflects Apple's impressive recovery and growth throughout 2026. The company's stock has risen approximately 16% year-to-date, driven by several factors including the successful launch of the iPhone 17 lineup, the expansion of financial services with Apple Upgrade, continued growth in the services segment (App Store, Apple Music, iCloud, Apple TV+), and investor optimism about artificial intelligence and new products in the company's pipeline.
9to5Mac highlighted that Apple Upgrade "represents a fundamental shift in how Apple thinks about device ownership," while Engadget noted the program "could significantly accelerate Apple's hardware upgrade cycle." The coverage across tech publications has been overwhelmingly positive, with analysts noting that the program creates a more predictable recurring revenue stream and deepens customer lock-in to the Apple ecosystem.
Wall Street analysts have received the launch with optimism. Apple Upgrade is seen as a powerful tool for increasing customer loyalty and creating a more predictable recurring revenue stream. While the program is initially available only in the United States, Apple has signaled plans for international expansion, with Europe and Asia being the most likely next markets. The program's success could radically transform Apple's business model, bringing it closer to a subscription-based ecosystem — a strategy the company has been aggressively pursuing under Tim Cook's leadership.
Sources: 9to5Mac, Engadget, Olhar Digital
