You can lease an iPhone through Klarna now

Follow ZDNET: Add us as a preferred source on Google.ZDNET's key takeawaysApple officially launched its new Apple Upgrade leasing program.Customers can lease iPhones, Watches, iPads, and Macs.Apple Upgrade is best for those who like to upgrade their iPhone annually.Apple Upgrade, the company's new device leasing program, allows customers to lease devices through the buy-now, pay-later giant Klarna for 12-, 24-, or 36-month periods before upgrading.Apple Upgrade replaces the iPhone Upgrade Program, a 24-month financing plan, and lets customers forgo bundled AppleCare and complete only a soft credit check to determine lease eligibility. Instead of paying off a device you own, the new program allows customers to lease iPads, Macs, and Apple Watches. Also: 5 underrated iOS 27 features that make my iPhone way better - and none are Siri AINow, you have several options to buy new gear through Apple: leasing via Apple Upgrade with Klarna, financing through Apple or a mobile carrier, or paying the full price for the device up front. Which option makes the most sense? The answer depends on your goals -- let's break them down. Should you lease with Apple Upgrade?Like the original iPhone Upgrade Program, Apple Upgrade is ideal for people who want to upgrade their iPhone to the latest generation each year, and are comfortable with leasing it -- not owning it outright. Apple Upgrade now extends this option to those who want a new Apple Watch every one to two years or a new Mac or iPad every two to three years.If you're more concerned with getting a new device every few years than owning it, the leasing program could be up your alley. Also: I was jealous of these 4 iOS 27 features - then I realized my Android phone already has themThe Apple Upgrade program is the most affordable way to frequently upgrade your iPhone. For example, leasing a $1,099 iPhone 17 Pro with 256GB is $45.99/month for 12 months. After paying $551.88 over the 12-month period, you can upgrade. So, you pay for 50% of the phone's retail price, then you can get a new phone. If you enter Apple Upgrade in September, when a new iPhone launches, you'll be on schedule to upgrade when the next one comes out.Over a 24-month leasing plan, you'll pay $31.99/month, totaling $767.76, or 70% of the phone's retail price. You must have a mobile carrier plan to lease an iPhone through Apple Upgrade, but your phone will be unlocked, meaning you can switch carriers throughout your Apple Upgrade leasing period.If you trade in a current device, you may shave off the price of your initial lease agreement, but you'll enter a new agreement once you upgrade your device -- no more trade-in credits. Apple Upgrade offers leasing options for Macs -- over 24- or 36-month periods. A $2,000 14-inch M5 MacBook Pro with 16GB of RAM, 1TB SSD, and a standard display costs $53.99/month for 24 months, the shortest leasing period. After 24 months, you'll pay $1,295.76, or 65% of the laptop's retail price, before needing to upgrade and start a new leasing agreement for a new laptop. If you lease the same MacBook Pro for 36 months, you'll pay $38.99/month, totaling $1,403.64, which is 70% of the laptop's retail price. Also: I tested iOS 26 Siri against iOS 27 Siri AI in my car - and it wasn't even closeIf you lease an Apple Watch through Apple Upgrade, you'll pay more than half of the Watch's retail price over a 12-month leasing period; leasing a $499 42mm aluminum Apple Watch Series 11 with GPS and cellular yields a $27.56/month payment. After 12 months, you've paid $330.72, or 66% of the Watch's retail price. You'll pay 73% of the same watch's retail price if you opt for a 24-month leasing plan.Customers can purchase AppleCare+ for their leased devices, and Apple's fine print says that insurance is not included in the lease. According to Apple's press release, customers "may incur damage fees if the device is lost, stolen, or not returned in the condition required by the lease."So whether you lease through Apple Upgrade, finance your iPhone, or purchase it outright, buying AppleCare remains a good idea.Also: Why Apple's iOS 26.6 is worth installing (it's not just for the 91 security fixes)If you want to upgrade your devices every one to three years, Apple Upgrade is the best option. The end goal of Apple Upgrade is not to own your devices; if you decide you want to keep a leased device, you'll have to pay a fee. If your sole motivation for monthly payments is to give yourself more time to pay off larger-ticket items, financing through Apple may be the better option.Should you finance your devices? You should finance your devices if you intend to keep them for a few years, but want to spread payments over time. If you finance your iPhone through Apple in-store or online, you can finance it either through a mobile carrier or through Apple via monthly Apple Card payments. The latter option does require an Apple Card. Then, you'll pay a monthly Apple Card bill for the hardware and pay your carrier's service fees separately.If you finance a phone at the Apple Store, in person or online, you'll pay 0% APR. If you choose to finance through an Apple Card, missed monthly payments are subject to Apple's variable interest rates, just like any other credit card.If you finance your phone through Apple, you aren't required to trade in your existing phone. When financing through a mobile carrier in their store, you may be required to trade in your current phone or upgrade your connectivity plan to get the phone you want. A mobile carrier also may not allow additional payments on a financed phone to pay it off early -- Apple does.Also: Will your iPhone support Siri AI? The answer is complicatedFinancing your iPhone through a carrier usually means you're stuck with that carrier for the remainder of your financing term; you can't switch providers until the phone is paid off. If you want to terminate an active financing with a mobile carrier, you'll likely incur hefty termination fees.I...