Apple just got rid of 'best way to purchase an iPhone' with introduction of 'frustrating' new scheme

Keeping up to date with the latest Apple iPhone just got harder as the tech giant has abolished its long-standing upgrade system that allowed loyal fans to upgrade to the newest model every year.

Last year, Apple went above and beyond with its new iPhone models, bringing the Air and the 17 Pro Max to our palms.

But if you're now considering trading in your current phone for one of the newer models, or are even looking at moving on to the iPhone 18 (supposedly set to release in spring 2027), you may be hard-struck, as Apple just removed the upgrade path used by millions of its customers.

Since 2015, the iPhone Upgrade System has allowed its users to pay monthly fees and upgrade to a new model on a 12-month loan. But as of yesterday, Apple has ended this system in the US and will be rolling out a new program, which has already left users 'frustrated'.

What is the new Apple Upgrade scheme?

In partnership with Klarna, the new Apple Upgrade scheme will be the new way to upgrade your iPhone and other popular tech products.

Announced on July 28, the US-limited initiative replaces the older loan system with a new lease program.

At first glance, it's very similar. You pay a monthly fee for a year (or two) and upgrade to the next iPhone when your agreement ends, usually with an extra few dollars as the tech continues to be more expensive.

But this new scheme is intended to cover all Apple gadgets, rather than just the iPhone. Hardware such as Macs, iPads, and Apple Watches will all be able to be upgraded on a frequent basis as part of this scheme.

One Redditor has crunched the numbers, and the new scheme reportedly saves people money, despite original fears, after taking into consideration taxes and AppleCare.

Originally spending $61 a month (pre-tax) for an iPhone Air with theft and loss protection, the new scheme would charge $58 a month and $14 on AppleCare.

But with taxes included in the new system, the user claims that 'this new program would cost $87/yr less than what I pay now.'

Yet, there are still a lot of disgruntled users.

iPhone users left 'frustrated' at new Apple Upgrade system

Taking to the Reddit thread, existing users of the scheme have voiced their concerns about the new system, claiming it's more difficult for the average consumer, with more hoops to jump through.

The biggest difference is that you no longer own the iPhones during a lease - you're effectively using a Klarna-owned product, renting it out to return at the end of your agreement - whereas the previous loan system meant that it was yours. This, of course, puts more jeopardy on damages.

"This reeks of a higher (than expected) increase in prices for the 18 series and products launching after September. It’s opportunistic and shameful," one Redditor said.

A second user added, "because it’s now a lease instead of a loan, it doesn’t really make sense to do the 24-month option unless you just want a lower monthly payment. At the end of the lease term, you’ve only paid for 70%."

"The most frustrating part is how opaque they are with the residual value at the end of the leases," said another user.

However, hidden in the fine-print FAQs, Apple confirmed that if you choose to stick with a specific model, you can become its outright owner, with a one-off payment option being made available, minus your current lease payments.

Others have also voiced concerns about joining forces with Klarna, which would now suggest that all of these leased phones will contribute towards sales figures, with Apple no longer owning the phones.

"Partnering with Klarna is a choice," a third added.

The scheme is limited to the US, and is already being put into practice.