Apple’s lease program is just a soft landing for you to spend on pricier iPhones this year

Apple has launched a new "Upgrade" program, essentially a lease program for purchasing Apple hardware. Customers can choose to return the device, upgrade to a newer model, or pay the remaining balance and keep it indefinitely. The program aims to make Apple products more affordable for customers who want to upgrade on a regular schedule.

According to outgoing Apple CEO Tim Cook, the program is designed to cater to customers who desire to have the latest products. The timing of the launch coincides with an anticipated price hike for iPhones in 2026, including a rumored $300 increase for the flagship iPhone 18 Pro. This price surge also extends to the foldable iPhone, which is expected to cost over $2,000.

The Upgrade program allows customers to bypass the high upfront costs by spreading the expenses over monthly installments. However, it's important to note that leasing and owning are distinct concepts. With the Upgrade program, customers do not technically own the device; they can either return it to Apple at the end of the lease period or exchange it for a newer model.

Additionally, Apple offers unlocked devices, making the program appealing to a global audience, including users in developing countries who often rely on financing options to purchase iPhones. Apple's Upgrade program capitalizes on the lower depreciation rates of its products compared to competitors, offering customers better resale values.

CEO Tim Cook emphasizes that Apple products maintain higher residual values than those of its rivals, making the lease-to-own option an attractive proposition for customers seeking to stay up-to-date with the latest technology.