Apple has officially discontinued the iPhone Upgrade Program in the United States, bringing an end to the financing option that has allowed customers to upgrade to a new iPhone each year since its introduction in 2015.
The change comes alongside the launch of Apple Upgrade, Apple’s new leasing program created in partnership with Klarna. Going forward, customers purchasing a new iPhone through Apple will no longer be able to enroll in the iPhone Upgrade Program, with the company instead directing eligible customers toward Apple Upgrade, Apple Card Monthly Installments, carrier financing, or purchasing a device outright.
Unlike the iPhone Upgrade Program, which bundled AppleCare+ into the monthly payment, Apple Upgrade is a leasing service that offers flexible terms depending on the product being leased. Customers can choose to return their device, purchase it with a final payment, or upgrade to a newer model at the end of the lease. AppleCare protection is available separately through AppleCare+ or AppleCare One.
Apple says existing iPhone Upgrade Program members will not be forced off the service immediately. Instead, eligible customers will be able to transition to Apple Upgrade when it comes time to replace their current iPhone, or choose one of the other financing options available.
The iPhone Upgrade Program debuted alongside the iPhone 6s in 2015, giving customers the ability to spread the cost of a new iPhone over monthly payments while receiving AppleCare+ coverage and the option to upgrade after 12 months.