Apple is expected to launch its recently-rumored Apple Upgrade subscription service in the United States on Tuesday, July 28, according to Bloomberg’s Mark Gurman, introducing a new way for customers to lease Apple devices with lower monthly payments.
The new program is expected to replace the iPhone Upgrade Program for new customers, with Gurman reporting that Apple will stop accepting new enrollments into the existing scheme on the same day. Customers who are already signed up to the iPhone Upgrade Program will reportedly be able to remain enrolled for the time being.
According to Gurman, Apple Upgrade will be offered in partnership with Klarna and will expand beyond the iPhone to include eligible iPad, Mac, and Apple Watch models. The report says iPhones and Apple Watches will be available on 24-month lease agreements, while iPads and Macs will have 36-month terms.
At the end of the lease, customers are expected to have several options, including returning their device, upgrading to a newer model, or paying an additional amount to keep the device.
Not every Apple product is expected to qualify for the new service. Gurman says lower-cost devices, including the iPhone 16, Apple Watch SE, entry-level iPad, and the rumored MacBook Neo, will not be eligible for Apple Upgrade.
One notable difference from the existing iPhone Upgrade Program is that AppleCare+ is not expected to be included in the monthly payment. Instead, customers would need to purchase device protection separately.
The reported launch comes as Apple continues to expand its device protection offerings. Earlier today, the company announced that AppleCare One is expanding to France, Germany, and Australia, following its recent launch in the United Kingdom and its debut in the United States last year.
AppleCare One allows customers to cover up to three eligible Apple devices under a single monthly subscription, with the option to add additional products for an extra monthly fee. Alongside the rollout, Apple has also expanded AppleCare+ with Theft and Loss to the iPad and Apple Watch in all three countries, extending protection that was previously limited to the iPhone in many markets.