CUPERTINO — Apple has officially entered the "buy now, pay later" subscription market, unveiling a major new consumer device leasing initiative dubbed Apple Upgrade.

Partnering with global digital payments provider [Klarna], the program completely revamps how consumers access Apple hardware. Instead of purchasing devices upfront or using traditional interest-free finance loans, users can now lease iPhones, Macs, iPads, and Apple Watches for lower, fixed monthly fees.

The program effectively replaces Apple's decade-old iPhone Upgrade Program, scaling the model across almost all major hardware categories to combat rising component costs and longer consumer upgrade cycles.

Under the new Klarna-backed system, terms vary by product category:

At the conclusion of the lease period, customers face three options: return the device to upgrade to a newer model under a new lease, pay a one-time fee to buy out and keep the device, or return the hardware and exit the program entirely.

While the low monthly entries look appealing, consumer advocacy groups have warned the program could become an ecosystem "trap".

Unlike its predecessor, Apple Upgrade does not bundle AppleCare+ protection into the baseline price. Leasers must purchase accidental damage protection separately if they want to avoid heavy penalties for returning damaged hardware. Furthermore, Apple has built a "Partner Finance Lock" into the device firmware, allowing Klarna to remotely restrict device functionality via Find My if payments are missed.

The program also explicitly excludes entry-level, budget-focused hardware. Buyers looking to lease the base-model iPhone 16, Apple Watch SE, or the affordable MacBook Neo will find those items barred from the subscription tier.

Australian consumers eager to jump on the subscription plan will have to wait. Historically, Apple tests financing products extensively in the US before deploying them internationally.

Currently, the only official path to leasing Apple gear locally is through commercial business programs like those offered via [Telstra], which allow corporate fleets to move hardware costs from CapEx to OpEx. For everyday Australian shoppers, standard credit card financing, carrier contracts, and trade-in programs remain the sole methods to subsidise the cost of new premium devices.

• Plan to Upgrade: A flexible lifecycle lease spanning 12, 24, 36, or 48 months. It explicitly accounts for the high residual value of Apple products upfront to keep monthly payments lower than an outright purchase. At the end of the term, you can choose to return the fleet, refresh with new models, or purchase them at fair market value. [1, 2]
• Plan to Own: A dedicated lease structure for businesses aiming to acquire asset ownership. It spreads out hardware costs over a 12- to 48-month window, concluding with a simple $1 buyout fee to legally transition ownership to your firm at the end of the term. [1]
• Single Upfront Payment Plan: An alternative procurement model where a single, discounted upfront payment completely covers a product's full 36-month lifecycle. This setup eliminates recurring monthly invoices while still providing data wiping, return shipping, and easy device refresh cycles when the term ends. [1]

• ABN Requirement: To apply for any official Apple-backed commercial leasing solution, the applicant must possess a valid Australian Business Number (ABN). [1]
• Flexible Order Scaling: When dealing directly with Apple's business team, there is no minimum order quantity. However, some local third-party computer outlets impose a minimum invoice baseline of $2,000. [1, 2]
• Broad Device Coverage: The scope of eligible lease hardware covers Macs, iPhones, iPads, Apple Watch, Apple TV, and Apple Vision Pro. Essential workflow accessories can also be bundled in without any strict cost limits. [1]

1. Apple Store for Business: Speak directly with specialized business experts inside physical Apple Retail Stores or contact the national B2B helpline at 1-800-854-3680.
2. Major Telcos: Telecom providers like [Telstra] bundle AFS device leasing directly onto standard corporate service bills, running concurrent 24- or 36-month mobile/broadband device terms.
3. Apple Authorised Resellers: Certified commercial IT firms and distributors (such as Synnex Australia, Mac Centre, First Focus, and Syntech IT) fully integrate AFS leasing options into their custom managed IT, security, and deployment pipelines.