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Apple Ceased Work on Its Planned iPhone Hardware Subscription Service

Apple ended a planned iPhone subscription project in 2024. Its US Apple Upgrade lease, announced in 2026, has different terms and end-of-lease choices.
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Apple stopped work on a planned iPhone hardware subscription service in late 2024. The proposed offer would have charged customers monthly and supplied a new iPhone each year, but Apple never publicly gave a definitive reason for ending the project. In the United States, Apple announced a different option in July 2026: Apple Upgrade, a lease administered by Klarna with choices to upgrade, buy or return the device at the end of the term.

What Apple’s cancelled iPhone subscription was supposed to do

Bloomberg reported on 18 December 2024 that Apple had halted an internal project under development since about 2022. The concept was to make “owning an iPhone like subscribing to an app”: customers would pay a monthly fee and receive a new iPhone every year. The service had reportedly been delayed beyond an expected 2022 launch.

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The project was not the same as ordinary monthly installment financing. Its central promise was a recurring device subscription tied to annual replacement, rather than paying off a particular phone through installments. Apple did not announce a customer-facing launch, and the reports do not establish a planned monthly price, subscriber target, launch geography or expected uptake.

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Why did Apple stop the project?

Bloomberg reported that the project team was disbanded and reassigned. 9to5Mac reported software problems and regulatory concerns as part of the context. Apple did not publicly detail its internal decision, and the cited reports do not establish one definitive cause. It would therefore be inaccurate to present any single reported obstacle as Apple’s official explanation.

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How Apple Upgrade differs from the cancelled concept

Apple announced Apple Upgrade on 28 July 2026 for customers in the United States. Klarna provides the leasing for iPhone and other Apple hardware. Apple says customers can add an AppleCare subscription. At the end of the lease, the customer can upgrade to a newer device, purchase the leased device with a one-time payment or return it.

Option What the customer pays for Upgrade and end-of-term choices Availability and protection
Cancelled iPhone hardware subscription concept Reportedly, a monthly fee for an iPhone subscription Reported annual replacement; no published end-of-term details No customer launch or geography established; protection terms not stated in the cited reports
Apple Upgrade A lease provided by Klarna At lease end, upgrade, buy with a one-time payment or return the device Announced for US customers; Apple says AppleCare subscription can be added
iPhone Upgrade Program and iPhone Payments Apple says Apple Upgrade replaces these for US customers, subject to eligibility and transition terms Terms depend on the applicable program and transition; see Apple’s announcement US transition applies subject to eligibility and terms; do not assume identical availability elsewhere

Apple Upgrade is therefore not evidence that the cancelled subscription returned under a new name. It is a lease with specified end-of-term choices, while the cancelled concept was described as a monthly subscription for annual phone replacement. Apple’s July 2026 announcement says Apple Upgrade replaces the iPhone Upgrade Program and iPhone Payments for US customers, subject to eligibility and transition terms; consult Apple’s announcement for current terms.

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Can you lease an iPhone from Apple now?

As announced in July 2026, US customers can use Apple Upgrade, with Klarna providing the lease. The announcement covers iPhone and other Apple hardware, but availability is subject to eligibility and transition terms. AppleCare is an add-on subscription, not a stated inclusion in the lease. The cited announcement establishes this US offer; it does not establish equivalent availability in other countries.

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What happens to iPhones when customers upgrade?

Apple Upgrade lets customers return a leased device, but the announcement does not specify what happens to each returned device afterward. More broadly, Apple reported that 15.9 million devices and accessories were sent to new owners for reuse in 2024. That figure covers devices and accessories, not iPhones alone, and describes reuse rather than the specific handling of Apple Upgrade returns.

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  • There will be no visible cosmetic imperfections when held at an arm’s length. There will be no visible cosmetic imperfections when held at an arm’s length.
  • This product will have a battery which exceeds 90% capacity relative to new.
  • Accessories will not be original, but will be compatible and fully functional. Product may come in generic Box.
  • This product is eligible for a replacement or refund within 365 days of receipt if you are not satisfied.

For devices kept in use, Apple says iPhones generally remain eligible for service and parts for at least five years after Apple stops distributing a model, subject to parts availability. This support policy is separate from a lease’s return or upgrade process.

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  • This product will have a battery which exceeds 90% capacity relative to new.
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  • This product is eligible for a replacement or refund within 365 days of receipt if you are not satisfied.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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