Apple's iPhone leasing program: How it works, what to consider as prices increase Hal Bundrick, CFP® · Senior Writer Thu, September 10, 2026 at 8:05 AM MST 5 min read Apple's iPhones just got pricier.
The company unveiled its first foldable iPhone, the iPhone Duo , which will start at $1,999. The new iPhone 18 Pro will start at $1,199, while the iPhone 18 Pro Max will start at $1,299. Some older iPhones are also seeing $100 price increases due to rising chip costs, including the iPhone 16, 17, 17e, and Air models.
An iPhone for $17.99 a month or an Apple Watch for $11.99 a month may sound like a deal too good to pass up. Apple's new Apple Upgrade program offers appealing, low monthly payments on Apple devices, so affordable in fact that some consumers may be asking, "What's the catch?"
Here's how the new Apple ( AAPL ) payment program works, and what experts say to consider before jumping in.
Also read: Best high-yield savings accounts: Earn up to 4.10% APY
Apple Upgrade is a hardware-leasing agreement that replaces the old purchase program. Consumers can obtain iPhones and other Apple products with a 12- or 24-month lease online, in the app, or at Apple Stores in the U.S. Apple Watches have a 24- and 36-month lease option.
Payments can be reduced by the value of an Apple device trade-in.
The lease program is facilitated by Klarna ( KLAR ), the buy-now-pay-later company, which takes a credit application with a soft credit pull that doesn't impact your credit score.
Entry-level Apple products such as the iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16), and Studio Display are not available through the Apple Upgrade program.
Read more: Is buy now, pay later helping or hurting your budget?
Apple provides this example of a lease arrangement on an iPhone 17 Pro 256GB with a purchase price of $1,099: The typical monthly payment would be $31.99 for a 24-month lease term and $45.99 for a 12-month lease term. All prices exclude taxes and any trade-in credit and do not include an AppleCare (device insurance) subscription.
In the 24-month lease example, the payments would total $767.76. To buy the phone at the end of the lease, a one-time residual payment of $331.24 for the balance remaining on the original purchase price would be required. So, $1,099 - $767.76 = $331.24, again excluding taxes and any trade-in credit.
Apple says you won't pay more than the phone's original list price when leasing it.
At the end of the lease term, customers can purchase their device with a one-time payment (see the sample calculation above), upgrade to another, or return it.
Yes, but Apple says "you may incur substantial fees if you terminate your lease before the end of your initial lease term."
Reporting synthesized and verified under Nexvoro.tech editorial guidelines. Full primary records referenced via Yahoo Finance.
Apple Watch Series 12 might finally convince me to switch away from WHOOP 9to5Mac The Apple Watch Series 12 is the start of a new wearable era The Verge Grab a new Apple Watch S12 or Ultra 4 at a discount with weekend de...
The Ultra 4 gets smarter about health tracking and lasts longer between charges. But for most people, the Series 12 gets close enough.
