Apple today officially launched its new Apple Upgrade leasing program, covering iPhone, iPad, Apple Watch, and Mac.

As part of this launch, Apple has also discontinued the iPhone Upgrade Program. Here’s what that means for current users.

In today’s press release, Apple said that existing customers will have multiple options once they are eligible for a new device per their iPhone Upgrade Program terms:

With the launch of Apple Upgrade, Apple will no longer offer the iPhone Upgrade Program and iPhone Payments in the United States. When eligible, customers currently enrolled in the iPhone Upgrade Program will have the option of leasing a new device with Apple Upgrade, financing with Apple Card Monthly Installments, purchasing the product outright, or choosing carrier financing.

If you’re an iPhone Upgrade Program customer, this means you won’t be able to get a new iPhone through the program once your upgrade window arrives. Instead, you’ll have to explore one of Apple’s other purchasing options, and Apple will guide you on how to make that change.

Apple has updated the iPhone Upgrade Program website to acknowledge these changes:

The iPhone Upgrade Program is coming to an end, and we want to say thanks for being a member. For now, you can continue making your remaining monthly payments. And when it’s time for your next iPhone, we’ll make it easy to get it in a way that works for you, including an entirely new payment option that we think you’ll love.

The iPhone Upgrade Program launched alongside the iPhone 6s and iPhone 6s Plus in September 2015. It was originally available only for in-store purchases at Apple retail locations. The following April, it expanded to Apple’s website as well.

Under the hood, the iPhone Upgrade Program and Apple Upgrade are fundamentally different.

The iPhone Upgrade Program was an installment loan backed by Citizens One, and payments went toward the purchase price. You could easily upgrade after 12 payments, or make all 24 payments and keep your device.

Apple Upgrade is a lease, meaning Klarna owns the device throughout the term, and your payments cover its use. At the end of the term, you can upgrade to a new device, buy your current device outright, or return your device and exit the program entirely.

Furthermore, the iPhone Upgrade Program offered AppleCare coverage baked into the monthly price. It’s a separate add-on in the new Apple Upgrade system.

What do you think of Apple’s decision to shutter the iPhone Upgrade Program in favor of Apple Upgrade? Are they comparable offerings? Let us know down in the comments.

• Anker Nano USB-C wall charger with built-in screen
• AirPods Pro 3: Check the current sale price
• Charge all your Apple gear at the same time
• Bring wireless CarPlay to any car
• USB-C cable that shows how fast you’re charging

Follow Chance: Threads, Bluesky, Instagram, and Mastodon.