"No strings attached": Why Apple’s online retail lead says its iPhone 18 Pro leasing model beats wireless carriers

(Image credit: Future) As Apple opens preorders for the iPhone 18 Pro and Pro Max (with the foldable iPhone Duo following in October) shoppers face a familiar question: does it make more sense to sign a multi-year agreement with a wireless carrier, or finance a new device directly through Apple?But things are fundamentally different for this year’s cycle. The iPhone maker recently introduced a new device leasing model via Klarna called “Apple Upgrade,” phasing out the long-standing Citizens One-backed iPhone Upgrade Program I had subscribed to for nearly a decade.To understand what this shift means for serial upgraders like myself and new buyers alike, I spoke with Karen Rasmussen, Apple's vice president of the Apple Store online, following the launch event to break down why the company completely revamped its approach — and why customers might want to lease their new iPhone via Apple instead of their wireless carrier this time around."What we really love about Apple Upgrade compared to carrier promotions is that it comes with no strings attached," Rasmussen said. "In the case of carrier promotions, you often have to trade something in, and it frequently comes with choices on the plan you're on that may not suit a particular individual. We wanted to give customers something that was completely unencumbered."Apple Upgrade is designed to make upgrading easierApple is also leveraging its online store infrastructure to eliminate launch-day friction. Through the "Get Ready" pre-approval window before preorders opened Saturday at 9 a.m. ET/5 a.m. PT, shoppers could select their exact configuration, complete credit checks in advance and even consult with Specialists over video or chat.But with the new program, direct leasing options don’t just apply to the latest family of iPhones. Apple Upgrade now spans Macs, iPads and Apple Watches, offering 12- and 24-month terms for mobile devices alongside 24- or 36-month options for computers and tablets."We took a ton of learnings from the original program," said Rasmussen. "Previously, we only had iPhone Upgrade. Now, customers can lease main products across the lineup with the term lengths they’ve actually been looking for."Get instant access to breaking news, the hottest reviews, great deals and helpful tips.One notable change in the new structure is the unbundling of AppleCare+, which was previously built into monthly payments."With Apple One, more and more people already have a subscription that covers multiple devices," Rasmussen said. "It didn't make sense to force customers to pay for a separate subscription for just one device.”For legacy users wondering whether the new model favors first-time buyers, Rasmussen emphasized that applying trade-in values upfront fundamentally changes the math. Rather than waiting until a device is paid off to unlock value, the new lease structure applies trade-in credits immediately, pulling down monthly payments from day one.What happens to your iPhone when you return it?With millions of leased devices set to reach the end of their terms, how these phones are handled plays a direct role in Apple's sustainability commitments and widely publicized 2030 carbon-neutral goals."Some people ask if they have to return it to Klarna. No, you drop it off at a store or mail it back to us," Rasmussen explained. "We're taking the device back."Once returned, Apple channels the hardware based on condition."Sometimes they come back in a condition where it's better off being recycled, and we do very responsible recycling to make sure that any elements of it can be reused from an environmental perspective," Rasmussen said. "And if it's in good condition, we make sure that it gets refurbished and finds a home with a second owner."That focus on responsible lifecycles reinforces why Apple wants to control the return process directly rather than handing it off to banks or carriers. By combining a sustainable return loop with zero carrier lock-ins, the new Apple Upgrade program offers a compelling alternative for anyone prioritizing flexibility over traditional ownership.That said, whether it truly beats standard carrier trade-in math comes down to your personal upgrade habits. As I make the pivot myself for my iPhone 18 Pro order, I’ll be sure to report back on how the new Klarna-backed checkout and long-term lease model hold up in practice. Follow Tom's Guide on Google News and add us as a preferred source to get our up-to-date news, analysis, and reviews in your feeds. More from Tom's GuideThe iPhone 18 Pro comes with a potential battery downgradeI went hands on with the new iPhone 18 Pro and Pro MaxExclusive: Apple CEO John Ternus and Joz on making iPhone Duo Kate Kozuch is the managing editor of social and video at Tom’s Guide. She writes about smartwatches, TVs, audio devices, and some cooking appliances, too. Kate appears on Fox News to talk tech trends and runs the Tom's Guide TikTok account, which you should be following if you don't already. When she’s not filming tech videos, you can find her taking up a new sport, mastering the NYT Crossword or channeling her inner celebrity chef.