Apple has quietly ended one of the most customer-friendly purchasing options it ever offered for the iPhone. The company is no longer accepting new customers into the iPhone Upgrade Program, replacing it with a new financing model called Apple Upgrade, powered by financial partner Klarna.

Although Apple is promoting the new program with a lower advertised monthly payment, many industry observers argue that it has lost the key advantages that made the original iPhone Upgrade Program so appealing. In fact, once all necessary costs are included, new customers may end up paying more for the same level of protection.

Apple Upgrade expands to more devices - but at the cost of simplicity

Introduced nearly a decade ago, the iPhone Upgrade Program was designed to simplify the process of getting a new iPhone every year. Instead of weighing trade-in values, searching for carrier promotions, or selling an old device independently, customers simply paid a fixed monthly fee.

That monthly payment included both the cost of the iPhone and AppleCare+, Apple's extended warranty service. The coverage was later expanded to include protection against theft and loss. After making 12 monthly payments, customers could upgrade to the latest iPhone and begin a new cycle without additional paperwork or complicated procedures.

Its transparency, simplicity and convenience made the program one of the most highly regarded purchasing options within Apple's ecosystem.

Apple Upgrade is no longer limited to the iPhone. The new financing program also covers Macs, iPads and Apple Watches, reflecting Apple's broader ambition to create a unified purchasing model across its hardware lineup.

However, despite supporting more products, Apple Upgrade no longer offers the straightforward experience that made its predecessor so popular.

Customers are still required to choose a mobile carrier during enrollment, even though the iPhone itself remains unlocked and can later be used with other carriers. In addition, pricing has become more complicated because several important services are no longer bundled into the monthly payment.

Lower starting price, but a higher overall cost

At first glance, Apple Upgrade appears significantly more affordable.

Apple advertises monthly payments starting at US$32.99 for the iPhone 17, substantially lower than the US$42.41 monthly payment under the previous iPhone Upgrade Program.

The lower figure creates the impression that customers can save nearly US$10 every month. However, the advertised price only covers financing for the device itself and does not include AppleCare+.

That is the most significant difference between the two programs.

Customers who want the same level of protection as before must subscribe to AppleCare+ separately for US$11.99 per month. Once that fee is added, the total monthly cost rises to US$44.98, exceeding the US$42.41 customers previously paid under the original program.

During the first 12 months - the point at which many participants in the previous program chose to upgrade to a new iPhone - the total cost under Apple Upgrade reaches US$539.76, compared with US$508.92 under the former iPhone Upgrade Program.

The difference of just over US$30 is not dramatic, but it reflects a noticeable shift in Apple's pricing strategy for both hardware and services.

A strategy that makes iPhones appear more affordable

Separating AppleCare+ from the monthly payment gives Apple a clear marketing advantage.

Instead of promoting a monthly payment close to US$45, the company can advertise a starting price of just US$32.99, making the product appear more accessible to potential buyers.

In reality, customers seeking the same warranty and device protection included in the previous program will ultimately pay more. In other words, while the advertised entry price has fallen, the total cost of ownership has increased.

This reflects a broader strategy increasingly adopted by technology companies: separating value-added services into optional charges to create the perception of a lower initial purchase price while generating additional revenue through subscription services.

Apple says existing iPhone Upgrade Program members will not be affected immediately. They can continue using the current program until they complete all 24 monthly payments or choose to upgrade to a new device.

However, now that Apple has stopped accepting new enrollments, anyone purchasing an iPhone directly from Apple through installment financing will have to use Apple Upgrade instead.

That also marks the end of what many considered one of Apple's most transparent, convenient and user-friendly retail programs.

Although Apple Upgrade expands financing to more devices and introduces a lower advertised monthly payment, it no longer preserves the simplicity that helped the iPhone Upgrade Program win over customers for nearly a decade. For many Apple users, this marks the end of one of the easiest and most rewarding ways to buy a new iPhone.

Hai Phong