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Is leasing an iPhone right for you? It may be if you want a regular upgrade and are comfortable returning the phone; it is less suited to you if keeping your device matters most. In the United States, Apple says its original iPhone Upgrade Program is ending and presents Apple Upgrade, a separate lease through Klarna, as a current alternative. The two programs work differently: the old program was a loan that could end with you owning the phone, while a lease generally requires a return or a buyout.
What is changing in Apple’s iPhone Upgrade Program?
Apple says the US iPhone Upgrade Program is coming to an end. Existing members do not need to take immediate action: their Citizens One loan remains active, and they can continue the scheduled payments through its 24-month term. After 24 payments, the iPhone is theirs to keep. Apple says financed AppleCare coverage remains active for the full term if the loan stays in good standing or is paid in full. Apple’s iPhone Upgrade Program FAQ states, “If you love your current iPhone, you can continue making your monthly payments.”
Members who have made enough payments to qualify for another iPhone can choose among Apple Upgrade, carrier offers, Apple financing, or a one-time purchase. Those choices are not equivalent: compare whether you will own the phone, what coverage costs, and whether you must return the device.
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The original US program was a credit-based installment loan, not a lease. Its terms described a 24-month loan at 0% APR covering an eligible iPhone and the selected AppleCare+ plan. Approval was subject to a credit check and other terms; customers also had to activate wireless service with an eligible carrier. Taxes and fees depended on the purchase channel. Apple’s US program terms govern the loan and upgrade conditions.
#1 Best Overall
- This phone is unlocked and compatible with any carrier of choice on GSM and CDMA networks (e.g. AT&T, T-Mobile, Sprint, Verizon, US Cellular, Cricket, Metro, Tracfone, Mint Mobile, etc.).
- Please check with your carrier to verify compatibility.
- When you receive the phone, insert a SIM card from a compatible carrier. Then, turn it on, connect to Wi-Fi, and follow the on screen prompts to activate service.
- The device does not come with headphones or a SIM card. It does include a generic (Mfi certified) charger and charging cable.
- Tested for battery health and guaranteed to have a minimum battery capacity of 80%.
When members could upgrade
Generally, a member could apply for another iPhone after making the equivalent of at least 12 payments, but payment count alone was not enough. The loan had to be in good standing, AppleCare+ had to remain continuously active, and the current iPhone had to meet Apple’s physical and operational condition criteria. The member also had to apply for a new loan, return the old phone as directed, and turn off Activation Lock. Eligibility was subject to the program terms.
How Apple Upgrade leasing works
Apple Upgrade is a distinct US lease program provided by Klarna, not a continuation of the Citizens One loan. Apple lists lease terms of 12, 24, or 36 months. At the end of the chosen term, the options listed by Apple are to upgrade and return the device, leave the program and return it, or buy it outright through the Klarna account. Check the current lease and buyout terms before comparing costs.
Apple also says customers can upgrade earlier by paying the remaining lease payments plus applicable taxes. The lease payment does not include AppleCare; if you purchase coverage, it is billed separately. Apple says there is no fee added to the monthly lease payment, but a device not returned in good condition can incur a damage fee. The precise assessment and charges depend on the current terms.
Rank #2
- This phone is unlocked and compatible with any carrier of choice on GSM and CDMA networks (e.g. AT&T, T-Mobile, Sprint, Verizon, US Cellular, Cricket, Metro, Tracfone, Mint Mobile, etc.).
- Please check with your carrier to verify compatibility.
- When you receive the phone, insert a SIM card from a compatible carrier. Then, turn it on, connect to Wi-Fi, and follow the on screen prompts to activate service.
- The device does not come with headphones or a SIM card. It does include a generic (Mfi certified) charger and charging cable.
What if you do nothing at the end?
Apple says the lease may extend month-to-month for up to six months if you take no action at the initial term’s end. Payments may change during the extension, and a purchase fee may apply if no action is taken by the end of that period. Review the applicable lease terms and make a decision before the term ends rather than assuming the phone will automatically be returned or become yours.
Carrier and eligibility conditions
Apple says enrollment requires connecting the leased iPhone to AT&T, T-Mobile, or Verizon. The leased phone is unlocked, subject to carrier terms. Apple Upgrade also has Klarna account and identity requirements; confirm the current eligibility and checkout terms for your circumstances.
Lease, finance, or buy: what to compare
| Factor | Apple Upgrade lease | Original iPhone Upgrade Program loan | Financing or outright purchase |
|---|---|---|---|
| Ownership | Return the phone or choose the lease buyout; check the Klarna account terms. | After all 24 payments, the iPhone is yours. | Depends on the financing agreement; an outright purchase gives you the device without a lease return requirement. |
| Upgrade timing | Apple lists 12-, 24-, and 36-month terms; early upgrade requires remaining payments plus applicable taxes. | Generally eligible after the equivalent of 12 payments, subject to account, coverage, condition, and application requirements. | Not stated as a program-wide schedule; it depends on your purchase or financing arrangement. |
| AppleCare | Not included in lease payments; separately billed if purchased. | The selected AppleCare+ plan was included in the financed amount and had to be maintained for upgrade eligibility. | Depends on the financing offer or coverage purchased. |
| Return obligation | Return the device to leave or upgrade, in good condition to avoid a damage fee, unless you buy it. | Return the old iPhone to exercise the program’s upgrade option; otherwise, completing the loan leaves it yours. | No lease return requirement for an outright purchase; financing terms vary. |
| Carrier condition | Enrollment requires connection to AT&T, T-Mobile, or Verizon; the phone is unlocked subject to carrier terms. | Wireless service with an eligible carrier was required under the program terms. | Varies by seller, financing agreement, and carrier plan. |
Who might find leasing worthwhile?
A lease may fit if you prioritize frequent upgrades
If getting a newer iPhone on a set schedule matters more to you than keeping a particular device, a lease can make that preference easier to act on. You still need to account for the return requirement, separately purchased coverage, and any costs for damage or early exit. Apple’s July 2026 launch announcement listed an iPhone lease starting price of $17.99 per month; that is a dated starting figure, not a guaranteed current quote. Actual payments depend on the product and terms, so check Apple’s current checkout price. Apple’s July 2026 announcement provides the dated figure.
Rank #3
- This phone is unlocked and compatible with any carrier of choice on GSM and CDMA networks (e.g. AT&T, T-Mobile, Sprint, Verizon, US Cellular, Cricket, Metro, Tracfone, Mint Mobile, etc.).
- Please check with your carrier to verify compatibility.
- When you receive the phone, insert a SIM card from a compatible carrier. Then, turn it on, connect to Wi-Fi, and follow the on screen prompts to activate service.
- The device does not come with headphones or a SIM card. It does include a generic (Mfi certified) charger and charging cable.
- Tested for battery health and guaranteed to have a minimum battery capacity of 80%.
Buying or financing may fit if you want to keep your phone
If you expect to use the same iPhone beyond a lease term, want to avoid return-condition assessments, or value owning the device, compare financing and an outright purchase with the lease’s full cost and buyout. A low monthly figure by itself does not establish that leasing is cheaper: the reviewed Apple materials do not provide a general savings comparison.
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Build a like-for-like total over the period you expect to use the phone. Include the payments and costs that apply to your option, rather than comparing the lease payment with a purchase price alone.
- Lease or loan payments over the same time period.
- AppleCare or other coverage, including separate charges where coverage is not bundled.
- Applicable taxes and fees.
- The carrier plan cost and any carrier conditions you would not otherwise choose.
- Potential repair or damage charges, and remaining payments plus taxes if you exit a lease early.
- The lease buyout amount if you want to keep the iPhone.
Apple’s program and legal pages describe US terms. Availability, pricing, device eligibility, and conditions can change, and terms outside the United States may differ. Consult the current iPhone Upgrade Program information, US loan terms, and Apple Upgrade program details before enrolling or making a cost comparison.
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