What’s the catch with the Apple Upgrade program?

Key Points:

• Apple has launched an Upgrade Program allowing customers to lease select iPhones, iPads, Macs, and Watches with fixed monthly payments over one to three years, promising not to pay more than the device's full price and sometimes less.
• At lease end, users can buy the device by paying the remaining balance, return it with no further cost but lose resale value, or upgrade to a new device with a new payment plan, but early termination fees and conditions apply.
• The program operates as a loan through Klarna, with no interest or late fees initially, but missing three payments leads to lease termination and full balance owed; unpaid debts may be sent to collections.
• Devices remain Klarna's property during the lease, and users are responsible for damages and return condition fees, with Apple recommending AppleCare protection plans that add to monthly costs.
• While offering lower monthly payments, the program may not be financially optimal for those wanting flexibility or resale value, as upgrading devices early forfeits potential cash from selling or trading in used devices.