Buying an iPhone could soon get cheaper: Apple reportedly plans new upgrade program

Apple is reportedly planning to introduce a subscription based model to curb the increasing prices of its products. The service will be called ‘Apple Upgrade’, allowing buyers to have more affordable ways to own premium devices and products. Buyers will be eligible to purchase Apple products through monthly payments rater than paying the full price upfront. Apple might launch this new initiative on July 28 across all Apple’s online store and retail outlets in the United States. Also Read: iPhone 18 and iPhone 18e to miss September 2026 launch: Supply chain leaks point to 2027 release

According to a report by Bloomberg’s Mark Gurman, the tech giant has partnered with ‘buy now, pay later’ (BNPL) provider to power the new program. Currently the program will be available in the United States, however, it might get globally available in coming months. The move from Apple comes at a time when smartphone costs are rising due to memory shortages and a shortage of chipsets. Additionally, AI related demand and ongoing supply chain pressures have also pushed the retail prices of flagship devices. Also Read: iPhone 18 to get powerful upgrade fans are waiting for

Apple bringing new financial strategy for buyers: Apple Upgrade

Apple Upgrade is shifting away from its traditional financing methods and to a leasing arrangement that is reducing the cost of premium devices. Eligible customers will have their credit checked (soft inquiry), and will pay a monthly installment over the course of the lease, rather than paying full retail price at the outset. Also Read: iPhone 18 might not come with premium display and powerful chipset, Here's why

Additionally, it is believed that Apple will cease to take new customers into its current iPhone Upgrade Program, and instead focus its financing efforts on Apple Upgrade.

The idea is to upgrade more often and make their devices more affordable.

How Apple Upgrade system will work?

The program works like a car lease, where customers can test out Apple devices for a specified amount of time and then determine their next course of action.

Lease duration based on device category

Users will get three option at the end of the lease term:

• Upgrade to a newer model by paying an applicable fee.
• Purchase the device by paying the remaining balance.
• Return the device.

This is a flexible structure that streamlines the upgrade process and will have a multi-year benefit period.

AppleCare+ benefit not included

One of the biggest differences between Apple Upgrade and Apple’s existing iPhone Upgrade Program is the absence of AppleCare+.

The new leasing service won’t include Apple’s extended warranty and accidental damage coverage in its monthly cost. If you want AppleCare+ you will have to pay extra, adding to the overall price tag of the product.

List of devices excluded from the Apple Upgrade

The leasing service will accommodate most of Apple’s higher priced offerings, but certain entry-level devices will not be supported.

The reported list exclusions include:

• iPhone 16 (base model)
• Base iPad
• Apple Watch SE
• MacBook Neo

Also, the program will not be available for business and educational institutions.

Why Apple decided to introduce Apple Upgrade

The new program comes as Apple and the whole tech sector grapples with increasing manufacturing expenses.

Factors responsible:

• Global supply chain disruptions
• Geopolitical tensions affecting production
• Rising memory and storage chip costs
• AI-driven demand for semiconductor components

Apple is not cutting back on retail pricing, it seems, but instead it is looking at ways to make it more affordable for consumers, such as by providing options for lower monthly payments or ability to upgrade as needed.

What are Apple’s product revenue trends?

Apple’s current revenue breakdown demonstrates continued strength across all of its core revenue categories, especially the iPad and iPhone businesses.

The numbers represent year-over-year growth in sales, for iPad, iPhone and Apple Watch, and in revenue share for AirPods and MacBook.

What is means for buyers and Apple enthusiasts?

If Apple Upgrade launches as expected, then it might make premium Apple devices easier to afford. This means, they don’t have to indulge in upfront payments with predictable monthly installments. The program will also help customers in greater flexibility to purchase, return, and upgrade their devices at the end of the lease.

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Nevertheless, the plan will lack AppleCare+ coverage, eve then the initiative signal’s company’s broader push and shift toward subscription based ownership models. This also aligns with consumer preferences and helps company to navigate rising hardware and component costs.