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Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Is leasing an iPhone right for you? In the United States, Apple’s original iPhone Upgrade Program is ending, and Apple now presents Apple Upgrade—a separate lease provided by Klarna—as an alternative. The key difference is ownership: the old program was a 24-month loan that let you keep the phone after all payments, while a lease generally ends with returning the device unless you choose a buyout. Your upgrade habits, return obligations, coverage needs, and desire to own the phone should guide the decision.
What is happening to Apple’s iPhone Upgrade Program?
Apple says the US iPhone Upgrade Program is coming to an end. Existing members do not need to act immediately: their Citizens One loan remains active, and they continue making payments through its 24-month term. After 24 payments, the iPhone belongs to the member. Apple says the financed AppleCare coverage remains active for the full term if the loan stays in good standing or is paid in full. Members who have made enough payments to qualify for another iPhone can choose Apple Upgrade, carrier offers, Apple financing, or a one-time purchase. Apple’s iPhone Upgrade Program page and FAQ explain the transition.
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That legacy program was a loan, not a lease. Its US terms described a 24-month, 0% APR installment loan covering an eligible iPhone and the selected AppleCare+ plan. Approval required a credit check, and the customer had to activate wireless service with an eligible carrier. Taxes and fees depended on the purchase channel. The US program terms set out the applicable conditions.
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Members generally became eligible to upgrade 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 active, and the 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 disable Activation Lock. Eligibility and approval for a new loan were separate considerations.
#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%.
How Apple Upgrade’s lease works
Apple Upgrade is a distinct US lease program provided by Klarna. Apple lists 12-, 24-, and 36-month lease terms. At the end of the selected term, customers can upgrade and return the device, leave the program and return it, or buy the phone outright through their Klarna account. Apple also says a customer can upgrade earlier by paying the remaining lease payments plus applicable taxes. Review Apple’s program information and the Apple Upgrade legal terms for the current details.
If you take no action at the end of the term
Apple says the lease may continue month-to-month for up to six months. Payment changes may apply, and a purchase fee may apply if no action is taken by the end of that extension. Because the extension and fee affect what you ultimately pay, check the current lease terms and account notices rather than assuming the original monthly amount or term simply continues.
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.
- Tested for battery health and guaranteed to have a minimum battery capacity of 80%.
Coverage, carrier, and return requirements
- AppleCare is separate: Apple Upgrade lease payments do not include AppleCare coverage. If you purchase coverage, account for its separate cost.
- Carrier connection is required at enrollment: Apple says lessees must connect the iPhone to AT&T, T-Mobile, or Verizon. Apple also says the leased iPhone is unlocked, subject to carrier terms.
- Return condition matters: Apple may charge a damage fee if the phone is not returned in good condition. Check the current lease and AppleCare service terms for the assessment criteria and charges.
- Leaving early has a cost: An early upgrade or exit requires payment of the remaining lease payments plus applicable taxes.
- Eligibility applies: Apple Upgrade involves Klarna account and identity requirements; meeting them should not be assumed.
Apple reported a starting iPhone lease price of $17.99 per month in its July 2026 launch announcement. That is a dated starting price, not a guaranteed quote: actual payments depend on the product and terms. Check current checkout pricing before deciding. Apple’s July 2026 announcement provides the launch figure.
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| Factor | Apple Upgrade lease | Legacy iPhone Upgrade Program loan | Outright purchase |
|---|---|---|---|
| Ownership | Return the phone at the end unless you choose the lease buyout. | The phone is yours after 24 payments. | You own the phone after purchase. |
| Upgrade timing | 12-, 24-, or 36-month terms; an earlier upgrade requires remaining payments plus applicable taxes. | Generally eligible after the equivalent of 12 payments, subject to program conditions and a new loan application. | No program upgrade schedule; you decide when to replace the phone. |
| AppleCare | Not included in lease payments; coverage is a separate cost if purchased. | The selected AppleCare+ plan was included in the amount financed. | Coverage is a separate purchase decision. |
| Return obligation | Returning the device is part of the end-of-term choices; poor condition can result in a damage fee. | Returning the old phone was required to use the early-upgrade option. | No lease return obligation. |
| Carrier and eligibility | Enrollment requires connection to AT&T, T-Mobile, or Verizon; Klarna account and identity requirements apply. | Credit approval and activation with an eligible carrier were required. | Carrier terms depend on how you buy and activate service. |
The old loan column describes the legacy program terms, not a new enrollment option. Apple says that program is ending; existing members should follow their loan and account terms.
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%.
A lease may suit you if
- You value getting a newer iPhone on a regular schedule more than keeping each phone.
- You are comfortable returning the device and meeting its condition requirements.
- You have compared the lease payment with the separate cost of coverage, taxes, carrier service, and any potential repair or damage charges.
Financing or buying may suit you if
- You want to keep a phone after paying for it, or use it well beyond a typical lease term.
- You would rather avoid a lease return assessment and the cost of ending a lease early.
- You want to compare the full cost of ownership, including any financing charges, coverage, taxes, and carrier costs, against a lease plus any eventual buyout.
How to compare the real cost
Do not decide from the monthly payment alone. For each option, total the payments over the period you expect to use the phone, then include the other costs that apply to your situation:
- AppleCare or other coverage, including whether it is bundled or billed separately.
- Applicable taxes and fees.
- The carrier plan’s cost and conditions.
- Possible repair or lease-return damage charges.
- Any remaining payments and taxes for an early lease exit, or the lease buyout if you want to keep the device.
Before treating a lease buyout as equivalent to financing or buying, confirm its terms in your Klarna account. The published program information gives the buyout as an end-of-term choice but does not establish a single buyout amount for every product or customer.
Rank #4
- Please check with your carrier to verify compatibility.
- Tested for battery health and guaranteed to have a minimum battery capacity of 80%.
What existing program members should do
- Continue the existing loan as agreed. Apple says current members can keep making monthly payments; there is no immediate action required solely because the program is ending.
- Check your payment and coverage status. Apple says financed AppleCare remains active through the loan term if the loan is in good standing or paid in full.
- Review upgrade eligibility before trading in. Confirm that you meet the payment, account, coverage, and device-condition requirements, and follow Apple’s instructions for applying for a new loan and returning the old iPhone.
- Compare the available next-phone options. Apple says eligible members can consider Apple Upgrade, carrier deals, Apple financing, or a one-time purchase.
The program and legal information here concerns the United States, including US carrier and credit terms. Apple Upgrade was announced in the United States in July 2026; terms, availability, eligibility, and prices may differ by country and can change. Check Apple’s current program pages and your account terms before enrolling or making a return decision.
Quick Recap
Best Value
- 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%.
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.
