Apple has found a great way to make an expensive iPhone more approachable. Apple Upgrade lets customers lease eligible devices through Klarna, with iPhone terms lasting 12 or 24 months. At the end, you can return the device, begin another lease, or pay the remaining amount to own it.
My initial reaction focused heavily on the value customers lose by returning an iPhone they could have sold or traded. While that concern is still valid, the program makes considerably more sense for a select group of people who already replace their iPhones every year. But the question is… how many people actually do that?
Most buyers keep their phones much longer
Recent industry data suggests annual upgraders are far from the norm. Assurant’s Q1 2026 trade-in report found that the average phone was 3.81 years old when traded in. Its earlier annual report put the average traded-in iPhone at 3.76 years during the final quarter of 2025. Those customers are holding their devices for nearly four years. Someone following that cycle has little reason to lease an iPhone for 12 months and restart their payments every year.
Buying gives them several additional years of use after the equivalent lease period ends. They can also sell or trade the phone later, recovering some of the original cost. Apple’s devices are particularly valuable in this regard. We recently reported on Apple lowering trade-in values across several newer iPhones, yet even those reduced offers can return hundreds of dollars toward another device. A returned lease gives that remaining value to Apple and Klarna.
Serial upgraders are real
There is still a smaller audience that changes phones remarkably quickly. SellCell reported in February 2026 that the iPhone 17 Pro Max had already become the most popular device in its top-20 trade-in rankings, despite launching around five months earlier. Strong resale prices appeared to encourage some owners to cash out early.
Tech enthusiasts, collectors, and people who always want the latest model may replace an iPhone annually or even sooner. Apple Upgrade makes life easier by finding a buyer, comparing trade-in offers, and timing a sale before the next launch. Apple’s example for a 256GB iPhone 17 Pro charges $45.99 per month across a 12-month lease. That totals $551.88 for a year with a $1,099 phone.
For an annual upgrader who dislikes reselling devices, this can be a reasonable convenience fee. Anyone changing phones twice or three times a year receives less benefit. Apple warns that ending a lease early can incur substantial charges, so the 12-month term remains the practical minimum.
Value depends on how often you upgrade
Apple Upgrade isn’t a bad deal outright. It has some clear benefits that might help people before they make a thousand dollar purchase. You no longer have to look for a good resale deal, giving annual upgraders a simple path to the next iPhone. Some customers will gladly pay for that simplicity.
The average iPhone owner appears to operate on a three-to-four-year cycle. For them, buying remains easier a smarter choice. They gain ownership and years of additional use. Compared to Android, Apple’s iPhones typically retain better resale value. So, it can be more financially sound to stick with a proper purchase.