Apple launches device leasing program, signaling a shift in smartphone ownership

Apple has launched Apple Upgrade in the United States, a monthly leasing program that lets customers get iPhones, iPads, Macs and Apple Watches through Klarna instead of buying them outright. Apple’s page names the service “Apple Upgrade - Lease iPhone, Mac, iPad, Watch,” and some iPhone plans start at about $17.99 to $18 a month.

At $17.99 a month, a 24-month lease costs about $431.76 before taxes and any added fees; over 36 months, it reaches about $647.64. Unlike installment financing, the customer does not automatically own the device at the end of the lease term, so there is no handset to resell or trade in to recover part of the cost.

Americans already hold onto phones longer. Counterpoint Research put smartphone replacement at 21 months in 2017, and the average U.S. upgrade cycle later reached 33 months. Assurant said on March 4, 2025, that consumers were upgrading mobile devices faster as signs of AI adoption emerged, including a decreasing age of trade-in devices in the second half of 2024 alongside the launch of next-generation AI-enabled devices.

Apple’s move also replaces its long-running iPhone Upgrade Program with a broader leasing model. That shift favors customers who want a new device every year or two and are willing to pay for continuity rather than equity. It is less attractive for buyers who keep phones for three years or longer, because the monthly bill continues while the asset never becomes theirs.

The International Telecommunication Union said there were 9.2 billion mobile-cellular subscriptions worldwide in 2025, equal to 112 subscriptions per 100 inhabitants. In high-income countries, the figure reached 142 per 100 inhabitants, compared with 70 in low-income countries.