Apple just launched a leasing scheme for iPhones. Here's what it actually costs you.
On 28 July 2026, Apple officially launched Apple Upgrade in the United States — a Klarna-backed leasing programme that lets customers pay monthly for iPhones, Macs, iPads and Apple Watches rather than buying them outright. It's described by Bloomberg as one of the biggest-ever changes to how Apple sells hardware. UK consumers are already asking two things: when does it land here, and is it actually cheaper than buying refurbished?
The short answer is: almost certainly not. But the full picture is worth understanding, because the way this scheme is structured matters a great deal to your wallet.
How Apple Upgrade Actually Works
Apple Upgrade is provided by Klarna, not Apple directly. You apply through the Apple Store, get a quick approval from Klarna, and start making monthly lease payments. For iPhones, you choose either a 12- or 24-month term. At the end, you have three options: upgrade to the latest model and start a new lease, pay a one-time fee to actually buy the device, or hand it back and walk away.
That middle option — buying the device at the end — is key, and it's one that many people won't notice until they're already 24 months in. If you do nothing when the term ends, the lease rolls to a month-to-month arrangement and your payments may increase. You never own the device unless you make that separate purchase payment. AppleCare+ is not included in the lease price either — that's an extra cost on top.
To be clear about the US pricing so far: iPhone leases start at $17.99 per month for the entry-level model, rising to around $34.99 per month for the iPhone 17 Pro Max on a 24-month term. Mac leases start at $24.99 per month. These are US dollar figures — UK pricing has not been announced.
When is Apple Upgrade coming to the UK?
Apple has not announced a UK launch date. The programme is currently available only in the United States, and requires a US Social Security Number or ITIN to apply — so there's no workaround for UK customers right now. Given Apple's typical rollout pattern, a UK version is likely within 6–12 months of the US launch, but nothing is confirmed. UK pricing, if and when it arrives, will be set separately and will reflect UK RRPs — which for flagship iPhones typically run higher than the direct dollar equivalent.
There's also a question of regulation. Klarna is FCA-authorised in the UK, so the financial infrastructure exists. But the Consumer Credit Act and FCA rules around lease agreements differ from the US, which may shape how the product is structured here.
Is It Cheaper to Lease an iPhone or Buy Refurbished?
Buying refurbished is almost always cheaper in total outlay — and you end the transaction owning the device outright, with no further obligation.
A refurbished iPhone 16 128GB in good condition currently trades for roughly £520–£560 in the UK market. That's a single payment, after which the phone is yours to keep, sell, or trade in whenever you want. A refurbished iPhone 15 Pro or iPhone 14 Pro can be found for considerably less, still running fully supported iOS with all the core features most people actually use day-to-day.
Now consider the leasing maths. Even at the entry-level US price of $17.99 per month, a 24-month iPhone lease totals around $431 — and that's for the cheapest model in the range, with no ownership at the end. Mid-range or Pro models at, say, $30–$35 per month over 24 months come to $720–$840 before you've bought the device. Add AppleCare+ separately, and you're paying new-device money for something you still don't own.
The honest comparison isn't just total spend, though. Leasing keeps your upfront cost to zero and guarantees access to a new device every one or two years. If you genuinely upgrade every cycle and have no interest in owning the device, the maths shifts slightly. But for the majority of UK buyers who keep a phone for 2–4 years, buying a quality refurbished model outright wins on cost every time.
Does Apple Upgrade make sense, or is it a trap?
It depends entirely on your habits — but the risks are real and worth naming plainly. TechRadar ran a piece this week headlined 'If you can't buy it, you can't afford it', capturing the scepticism that's dominated online discussion since launch. The concern isn't that leasing is inherently wrong; it's that the structure of Apple Upgrade makes it easy to spend significantly more than the cost of outright ownership without noticing.
Here's what catches people out:
- You don't own the device at the end of the term — a buyout payment is required, on top of everything you've already paid.
- If you miss three consecutive payments, the lease ends and you owe the full outstanding balance immediately.
- AppleCare+ is optional and costs extra — yet you're responsible for the condition of a device you're leasing, not owning.
- Exiting early isn't free — if your circumstances change at month six of a 24-month lease, you're still liable for the remaining payments.
- Apple is discontinuing the old iPhone Upgrade Program alongside this launch — so customers who previously got 0% financing that led to ownership no longer have that option through Apple directly.
The scheme works well for a specific type of person: someone who upgrades annually, wants a brand-new device every time, and treats the monthly payment like a utility bill. For everyone else, it's an expensive way to never own anything.
Why Refurbished Makes More Sense for Most UK Buyers Right Now
The refurbished market in 2026 is in genuinely good shape. A professionally refurbished iPhone 16 gives you the A18 chip, Apple Intelligence, MagSafe and a 48MP camera system — the full current-generation experience — at a price well below new retail. Models from the iPhone 14 and 15 generation sit even lower, with software support running through to 2027 and 2029 respectively.
The key difference with buying refurbished: you own it outright from day one. You can sell it or trade it in when you're ready to upgrade, recouping a chunk of what you paid. That residual value doesn't exist in a lease — when you hand back the device, you get nothing back for the payments you've made.
When Apple Upgrade does arrive in the UK, run the numbers for your specific situation. Take the monthly payment, multiply by the term, and compare that total honestly against the refurbished price of a device one generation back. In most cases, the refurbished route wins — and you end up with something to show for it.
If you're ready to make the switch now rather than waiting for a leasing product that hasn't launched here yet, browse our refurbished iPhones — everything is verified, graded and sold with warranty. Or if you've got an iPhone to move on before Apple Upgrade changes the trade-in landscape, get a quote to sell your phone to us for instant payment. And if you want to understand exactly what you're buying, our device grading guide explains how we assess condition before anything goes on sale.
