Apple Inc (NASDAQ:AAPL, XETRA:APC) has rolled out Apple Upgrade nationwide in the US, a hardware-leasing program available through the company's online store, the Apple Store app and its retail locations.
The program offers 12- and 24-month leasing terms for iPhone and Apple Watch, and 24- and 36-month terms for Mac and iPad. Monthly pricing starts at $17.99 for iPhone, $11.99 for Apple Watch, $24.99 for Mac and $11.99 for iPad.
While Apple has long offered trade-ins, monthly financing and its existing iPhone Upgrade Program, analysts at Bank of America said the new offering packages those mechanics into a single platform spanning Apple's major hardware categories, with support from buy-now-pay-later provider Klarna.
The bank called the move "directionally positive," pointing to potential upside from lower affordability friction, a richer product mix, faster device replacement cycles, deeper direct engagement with customers and monetization of residual device value.
Under a traditional purchase model, Apple collects the full device price upfront while the customer retains the hardware's residual value, with Apple only recapturing that value if the customer later trades the device in. Under Apple Upgrade, customers instead pay a lower monthly rate and return the device at lease-end, allowing Apple to monetize the remaining value through refurbishment and parts recovery.
BofA said the incremental opportunity lies in the combination of lease payments and returned-device value, paired with a faster upgrade cycle that can generate a new device transaction sooner while bringing residual value that was previously held by the customer into Apple's own hardware ecosystem.
Using the example of a $1,099 iPhone 17 Pro leased at $45.99 per month over 12 months, the bank calculated total customer payments of roughly $552, implying a residual device value of about $547, or roughly 50% of the phone's list price.
BofA also said the program could extend Apple's control over the customer relationship, though it characterized this as increased channel influence rather than outright disintermediation of wireless carriers, which still hold an advantage through their own trade-in subsidies.
An Apple-branded, carrier-independent upgrade path, the bank said, gives customers another reason to transact directly with Apple, supporting product mix, AppleCare and accessory attachment, device setup and the timing of future purchases.
Klarna's involvement, BofA added, should allow Apple to scale the program without building out its own underwriting and servicing infrastructure.