'If you can’t buy it, you can’t afford it' — why not everyone is buying Apple's new iPhone leasing offer

Apple's long-rumored product leasing program, which it calls unironically "Apple Upgrade," is finally here, and it looks like a low-cost way to slide into the Apple ecosystem whether on the shiny surface of a gleaming iPhone 17 Pro, a Snoopy-faced Apple Watch, a clamshell Apple Silicon Mac, or an ultra-slim iPad Pro.

With no upfront fee and monthly charges as low as $11.99 a month (it's only available in the US for now), your new Apple Watch might cost you far less than your daily Starbucks mocha latte.

Honestly, this sounds like a great program, especially when you can snap up a powerful MacBook Pro for as little as $38.99 a month. Naturally, most people might be looking at the Upgrade program, a leasing program actually run by Klarna, for their next iPhone and probably the popular iPhone 17 Pro Max, which starts at $34.99 a month. Still, when I asked on a pair of social media platforms (X and Threads) if people would be leasing their next iPhone, the sentiment was decidedly negative.

On Threads and with 199 votes in, 80% said no. On X, with 105 votes, 78% said nah. I was surprised, but some of the responses to my anecdotal polls offered a little insight.

One thing a few talked about was ownership. Apple Upgrade works like most other lease programs, which means ownership is not really a thing. Here are the highlights:

• You have to qualify for the program (might be a credit check)
• You pay a fixed fee for 12, 24, or 36 months
• You're not paying off the cost of the phone
• At the end of the lease term, you own nothing
• You can return the phone
• You can turn it in for an upgrade and continue paying
• A better device (upgrading from an iPhone 17 to an iPhone 17 Pro Max) will increase your monthly fee
• You can buy the leased device at the end of the lease term (it's the full price minus whatever you've paid thus far via the lease program)

Virtually every part of this resembles a typical lease program you might have with an automobile.

"I have an Apple Card for a reason… I like being able to pay it off whenever and ACTUALLY own the thing," wrote brianniesniak on Threads.

The ownership argument is the sole reason I've never leased a car. I always buy them with a substantial down payment and then pay the rest off. Of course, I tend to hold onto my cars for a decade or more. In the world of technology, like smartphones, laptops, watches, and tablets, technical advances are so rapid that it rarely makes sense to hold onto them for that long.

On the other hand, there are people who own their tech for extraordinarily long times and only upgrade when companies like Apple, Microsoft, or a necessary third-party application force them to through lack of support. These days, many companies, including Samsung and Google, tout years of OS and security updates, but in a world of leases, none of that really matters. Every two years, you could have a new device; it will always have the latest software and security protections.

Access for all

"If you can’t buy it, you can’t afford it," argues Mrmarchall on Threads. I mean, isn't that the whole point of credit and lease programs? They throw open the doors of access to these products to those who don't have the funds to cover full purchase. Yes, there is the risk of someone who unexpectedly is unable to afford the lease, and then, if they try to leave the program, they're still on the hook for the remainder of the program (they leave at 3 months and still have to pay 21 months).

Even though most in my poll respondents were anti-lease, some saw the obvious benefits. "People who picked no, you seriously have $1000 laying around?" wrote Ajvizz on Threads.

"Yeah, probably. I can't personally think of any negatives in my situation," surmised Dilpickle1 on Threads.

Others on X pointed to the excellent option of refurbished iPhones, which offer access to pre-owned iPhones (sometimes higher-end models) at far more reasonable prices. And you get the added benefit of true ownership, if that's your thing.

The endless age of subscriptions

Apple Upgrade's inherent lack of ownership and never-ending payments because you're in an endless upgrade cycle does raise some concerns and correlates to an unfortunate and rapidly growing trend.

"It is absolutely crazy that we have entered the era of leased consumer electronics. "Everything is a subscription!" should not be the new normal," wrote Tech Journalist Matthew Keys on X.

I had to agree. Last year I wrote about tech services subscription culture and how companies are now often placing key features behind subscription paywalls. At least in this instance, you're getting the whole device and all its capabilities. The lease only equates to a subscription in that there's an assumption you will jump from one leased device to another, hence the name "Apple Upgrade".

If I were asked, I think I'd look more positively on Apple Upgrade.

Smartphones, laptops, smart watches, desktop computers, and tablets are, in some ways, a fact of life. No one leaves home without a phone in their pocket. Frustration over aging iPhones that can't support the latest OS or whose battery life ends faster than a summer vacation is all too real. The knowledge that with a relatively affordable monthly payment, you're guaranteed a better phone in 24 months might be a relief.

It's an irrefutable fact that as soon as you unbox your shiny new iPhone, it's worth less than it was seconds before. Those who buy cars know that depreciation, which begins the moment you drive it off the lot, is real. It's no different with consumer electronics. Maybe ownership isn't all it's cracked up to be. So what if joining Apple Upgrade means, for the next 24 months, Apple kind of owns you?