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Apple just rolled out its new Apple Upgrade leasing plan, and it's not a small refresh — it's a full-blown expansion covering iPhone, iPad, Apple Watch and Mac all under one roof. But tucked inside today's announcement is a twist that longtime customers won't want to miss: Apple is quietly closing the book on the iPhone Upgrade Program many of them have relied on for years.

Current Members, Don't Panic Yet

If you're already enrolled, there's no need to sound the alarm just yet — but it's worth paying close attention. Once your existing upgrade window arrives, the old path forward simply won't be there anymore. Apple says once that moment hits, customers will instead have to choose between leasing through the new Apple Upgrade program, financing via Apple Card Monthly Installments, paying full price upfront, or working through their wireless carrier — a fork in the road that didn't exist before.

Apple has promised to guide enrolled customers through the transition when their time comes, so nobody should be left scrambling for answers. Still, there's something bittersweet about watching this program go. It launched back in 2015 alongside the iPhone 6s and 6s Plus, starting out as an in-store-only offer before expanding online the following year. A decade-long run is nothing to scoff at, and plenty of loyal customers had grown comfortable with how it worked.

How the Old System Actually Worked

Under the hood, the iPhone Upgrade Program functioned like a structured loan through Citizens One, with monthly payments steadily chipping away at the phone's full price like water wearing down stone. After 12 payments, customers earned the right to upgrade to something new — or they could stick it out through all 24 payments and simply keep the device outright.

Enter Apple Upgrade: A Different Beast Entirely

New Partner, New Rules

The replacement program operates on fundamentally different footing. Instead of Citizens One, Apple has teamed up with Klarna — and rather than a loan, this new arrangement is structured as a lease. That distinction matters more than it might sound: Klarna technically retains ownership of the device the entire time payments are being made, flipping the old ownership model on its head.

Once the lease term concludes, customers land at a familiar-sounding crossroads: upgrade to a newer device, buy out the one they've been using, or simply walk away and close the chapter there.

Wider Reach, But a Notable Trade-Off

The silver lining here is real — folding iPads and Macs into the same program is a genuine win for consumers who've long wanted that kind of flexibility beyond just iPhones. But there's a catch worth flagging before anyone gets too excited. Previously, AppleCare coverage was baked directly into the monthly iPhone Upgrade Program payment, bundled in like a package deal. Under the new Apple Upgrade lease, that protection becomes a separate add-on, meaning the sticker-shock math on a "monthly payment" won't tell the whole story anymore.

For anyone weighing their next device purchase, that shift is worth factoring in carefully — because what looks like a lower monthly number could quietly cost more once AppleCare gets tacked back on separately.