Apple has officially rolled out its new Apple Upgrade leasing plan, and it covers way more ground than the old program ever did. iPhone, iPad, Apple Watch, and Mac are all part of the deal now. But there’s a catch buried in today’s announcement: the iPhone Upgrade Program you might already be enrolled in is going away for good.
What happens if you’re already in the iPhone Upgrade Program?
If you’re currently enrolled, don’t panic, but do pay attention. Once your upgrade window rolls around, you won’t be able to grab your next iPhone through the old program anymore. Apple says you’ll instead have to pick from leasing through Apple Upgrade, financing with Apple Card Monthly Installments, buying the phone outright, or going through your carrier.
Apple will walk you through making the switch when the time comes, so you won’t be left guessing. I, for one, am sad to see the iPhone Upgrade Program ending. It has been around since 2015, launching alongside the iPhone 6s and 6s Plus. It started as an in-store-only deal before making its way online the following year. A solid decade-long run, if you ask me, and one that a lot of us got comfortable with.
So what’s actually different with Apple Upgrade?
This is where things get interesting. The old iPhone Upgrade Program was essentially a loan through Citizens One, where your monthly payments chipped away at the phone’s purchase price. After 12 payments, you could upgrade, or ride it out for all 24 and just keep the phone.
Apple Upgrade leasing works differently. For one, Apple has partnered with Klarna instead of Citizen One. Also, it’s a lease, and Klarna technically owns your device the whole time you’re paying for it. Once your term wraps up, you get to choose: upgrade to something new, buy out your current device, or just walk away and end things there.
One big benefit, of course, is that the new program has expanded to include the iPads and Macs, which is welcome news for consumers. However, there’s also a change worth flagging. AppleCare used to be bundled right into your monthly iPhone Upgrade Program payment. With the new Apple lease program, that’s now a separate add-on, so keep that in mind when you’re weighing the actual cost of your next iPhone.