Should you lease your next iPhone? What you need to know about the rumored 'Apple Upgrade' program

(Image credit: Shutterstock) Apple is reportedly planning on ditching its long-running iPhone Upgrade plan for a new "leasing" program. The new "Apple Upgrade" program is allegedly going to launch at the end of the month.According to Bloomberg's Mark Gurman, the new plan will be similar to how a car lease works with options to upgrade a new device early or keep or return the iPhone at the end of the lease.One upside of the plan is that it will supposedly cover most Apple devices including iPhones, Mac, iPad and Apple Watch models. Apple is allegedly partnering with Klarna, a digital banking platform based out of Sweden. You may be most familiar with Klarna and its "Pay Later" program, similar to offerings from PayPal and Affirm.However, entry-level devices like the base model iPad, Apple Watch SE and MacBook Neo are reportedly not eligible for the new program. Additionally, Apple is not including AppleCare with the plan, unlike the iPhone Upgrade Program. Unfortunate since Apple just raised AppleCare subscription prices.How the 'Apple Upgrade' program could work (Image credit: Getty Images)Per Gurman, starting July 28 this Apple Upgrade program would replace the iPhone Upgrade plan with 24-month leases for iPhones and Apple Watches, and 36-month leases for iPads and Macs. Apparently, you will need to be approved via a soft credit check.Current iPhone Upgrade subscribers can upgrade to the newest model, presuming they've kept up 12 months of payments. Gurman says you'll be able to upgrade to a new model earlier if you want, like a car lease. That would just extend the lease another two years.Allegedly, Apple is planning to pitch the change as a way for customers to have lower payments versus current financing programs. Most customers, at least in the U.S., who don't purchase directly from Apple likely lock into contracts with the big three network carriers that offer "free" iPhones, but really it's subsidized into your bill over the contract period.Get instant access to breaking news, the hottest reviews, great deals and helpful tips.What it replaces The iPhone Upgrade Program has existed since 2015 as a way for Apple-buyers to upgrade to the premium iPhone at a lower monthly cost than the upfront price. It is (or was) marketed as a first-party program directly through Apple.Importantly, the iPhone Upgrade program let you get a new iPhone every year (after 12 installments) without being tied to one carrier. Apple also threw in its AppleCare+ warranty, which includes up to two years of hardware repairs, software support and up to two incidents of accidental damage coverage (subject to an additional service fee).Beyond that, it means Apple is operating through a new partner, Klarna, instead of Citizens One in the U.S. and Barclays in the U.K. It mostly means that Apple continues not having to bear the risk of financing.It's not clear from Gurman's report if current subscribers to the iPhone Upgrade Program will be pushed over to the new Apple Upgrade plan, especially with the lack of AppleCare.Lease to own? (Image credit: HP)One of the fears surrounding the ongoing RAM crisis is that companies will force you to rent your computers instead owning them moving forward. This does feel like Apple attempting to build their version of that concept.Earlier this year, comments made by Amazon's Jeff Bezos resurfaced when he claimed that computing wasn't going to be something rented off the grid. "That's not going to last. It makes no sense. You're going to buy compute off the grid. That's AWS," Bezos predicted.In February, HP launched a laptop subscription service that lets you pay a monthly fee for an AI-powered PC that starts around $34.99 per month. We did the math and found that after three years, you'd be overpaying for the laptops.Phones and laptops are expensive, with starting prices for a decent model starting around $700. For many, having that kind of scratch on hand can be tough, but a phone and laptop are nearly essential in today's world.Plus, as we've repeatedly found with digital games, movies and ebooks, it means you don't own the product, which also means companies can take them away whenever they want.The next big fight in tech between the little guy and big corporations may be over the right to own the things we pay for. 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 GuideiOS 27 beta 4 is now here — all the newest features for your iPhoneSamsung Galaxy Card takes aim at Apple Card with way more perks and rewards — here’s what you getThe ultimate guide to buying a MacBook after Apple's RAM crisis price surge Scott Younker is the West Coast Reporter at Tom’s Guide. He covers all the lastest tech news. He’s been involved in tech since 2011 at various outlets and is on an ongoing hunt to build the easiest to use home media system. When not writing about the latest devices, you are more than welcome to discuss board games or disc golf with him. He also handles all the Connections coverage on Tom's Guide and has been playing the addictive NYT game since it released.