What It Means Before You Upgrade

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Buying Apple hardware just became a little more like leasing a car.

The tech giant has launched Apple Upgrade, a new US leasing program that lets eligible customers lease iPhones, Macs, iPads, and Apple Watches through Klarna instead of purchasing them outright. The program replaces Apple’s long-running iPhone Upgrade Program for new customers and expands the concept beyond the iPhone to nearly the company’s entire hardware lineup.

For consumers who upgrade every year or two, Apple Upgrade could lower upfront costs and make it easier to switch to newer devices. But unlike traditional financing, the program is a lease, meaning customers should understand what happens at the end of their...

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