Apple announced Apple Upgrade today, a new product leasing program offered through Klarna to approved customers in the United States.

Through Apple Upgrade, customers can get access to iPhone, Apple Watch, Mac, and iPad through the Apple Store online, in the Apple Store app, and at Apple Store locations in the United States for a monthly price.

Apple Upgrade includes 12- and 24-month leasing options for iPhone and Apple Watch and longer 24- and 36-month plans for Mac and iPad.

Apple Watch plans start at $11.99 per month, while iPhone starts at $17.99 monthly. iPad also starts at $11.99, but of course, at the 36-month option rather than the 24-month one for Watch. Mac leasing prices start at $24.99 for 36 months.

When customers first enroll in Apple Upgrade, they can lower monthly lease payments by trading in their current device through Apple’s official Trade In program. Customers can also earn three percent Daily Cash back on Apple Upgrade lease payments when they use their Apple Card. This is the same percentage as any other purchase made through Apple using Apple Card.

Apple says that enrolling in Apple Upgrade takes only a few minutes, either online or in-store, and will include a soft credit inquiry that should not affect the applicant’s credit score. Once approved, the transaction proceeds as normal.

At the end of their lease term, customers can upgrade their device to the newest generation, purchase it for a one-time payment, or return the device and exit the program. Billing, scheduling, and payments are handled through Klarna.

“At Apple, we put the customer at the center of everything we do,” says Karen Rasmussen, Apple’s vice president of the Apple Store online. “And we’re thrilled that Apple Upgrade offers our customers, both online and in-store, a more flexible way to pay for the products they love.”

The Apple Upgrade plan arrives very shortly after Apple increased prices for many of its products, including Mac and iPad. While the Mac Studio with M3 Ultra jumped by $1,300, most price hikes were a few hundred dollars. These price jumps arrive at a time when seemingly every electronic device, and many other products, are getting more expensive.

Clearly, Apple’s objective here is to make its latest products feel more affordable, even if it means customers do not actually own them. Apple has already offered similar leasing-style programs for some business customers, and it is now bringing this to the masses, at least in the US.

One casualty of the new Apple Upgrade program is the iPhone Upgrade Program. As Apple says in an email to iPhone Upgrade Program customers today, that program is ending.

After making the equivalent of 12 monthly payments, customers will be eligible to lease a new device through Apple Upgrade, purchase their existing device outright by making payments until it is paid off, or select carrier financing options. Existing iPhone Upgrade Program customers who wish to exit the program and have made the required number of payments can visit an Apple Store for assistance with returning their iPhone and closing out their loan.

Apple Upgrade is available now in the United States.

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Image creditsApple