Apple’s reported new device rental plan may remove a benefit that existing iPhone Upgrade Program customers have received: AppleCare. The proposed Apple Upgrade program is said to exclude the device protection service, despite potentially replacing the older iPhone financing option.
That difference could matter for customers who prefer device payments and protection coverage in a single arrangement. There is no information yet on whether AppleCare could be added separately to Apple Upgrade.
Bloomberg, as cited by GSMArena, reports that Apple is developing the program with Klarna. Applicants would reportedly undergo a soft credit check to access the subscription-based device payment plan.
The reported launch date is July 28, although neither Apple nor Klarna has announced the program officially. Its final terms, eligible models and payment mechanics therefore remain unconfirmed.
Longer Terms for iPad and Mac
Apple Upgrade is expected to offer different rental periods depending on the product category. iPhone and Apple Watch models would have 24-month terms, while iPad and Mac devices could be rented for up to 36 months.
| Device Category | Rental Term | Program Status |
|---|---|---|
| iPhone | 24 months | Available, except iPhone 16 |
| Apple Watch | 24 months | Available, except Apple Watch SE |
| iPad | 36 months | Available, except the base iPad |
| Mac | 36 months | Available, except MacBook Neo |
Customers would reportedly be able to pay off a device before the rental period ends. They could also upgrade to a newer model before the contract is complete.
At the end of the agreement, customers are expected to have a choice between returning the device or keeping it. This flexibility would distinguish the plan from a straightforward fixed-term payment arrangement.
Four Products Are Said to Be Excluded
Apple Watch SE, the base iPad, iPhone 16 and MacBook Neo are reportedly excluded from Apple Upgrade. The report does not explain why these four products would not be covered.
The exclusions mean customers would need to confirm model eligibility before relying on the program. The available product range could become a key consideration alongside the absence of AppleCare.
The report surfaced about a month after Apple raised prices across all of its devices except iPhone. Longer payment periods for iPad and Mac could help make those products more accessible after the price increases.
If the plan launches as reported, Apple Upgrade would take the place of the iPhone Upgrade Program as Apple’s device financing option. Official confirmation will be needed to establish the program’s full conditions and availability.