Apple abandoned an internal plan to let customers pay monthly for a new iPhone every year. Bloomberg reported on 18 December 2024 that Apple disbanded the project team and reassigned its members. Apple did not publish a single official reason for the decision; reports cited software problems and regulatory concerns.
In the United States, Apple’s current alternative is Apple Upgrade, announced on 28 July 2026. It is a Klarna-provided lease, not the cancelled subscription: at the lease’s end, an eligible customer can upgrade, buy the device with one payment or return it.
| # | Preview | Product | Price | |
|---|---|---|---|---|
| 1 |
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Apple iPhone 14, 128GB, Blue - Unlocked (Renewed) | $299.95 | Buy on Amazon |
| 2 |
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Apple iPhone 14, 128GB, Midnight - Unlocked (Renewed) | $300.00 | Buy on Amazon |
| 3 |
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Apple iPhone 13, 128GB, Midnight - Unlocked (Renewed) | $262.00 | Buy on Amazon |
| 4 |
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Apple iPhone 16e, 128GB, Black - Unlocked (Renewed) | $389.00 | Buy on Amazon |
| 5 |
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Apple iPhone 15, 128GB, Black - Unlocked (Renewed) | $405.00 | Buy on Amazon |
What Apple cancelled
The proposed service had reportedly been in development since about 2022 and was delayed beyond an expected 2022 launch. Its basic promise was simple: pay a recurring monthly fee and receive a new Apple iPhone each year, making phone ownership resemble an app subscription.
No dependable public figure establishes the planned monthly price, subscriber target, launch countries or expected uptake. Those details should not be inferred from Apple’s later financing or leasing products.
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Why the project stopped
9to5Mac reported software setbacks and regulatory concerns. Bloomberg reported the team’s dissolution and reassignment. Neither report establishes one definitive, officially confirmed cause, and Apple did not publicly explain the internal decision.
How the cancelled subscription differs from Apple’s current options
| Feature | Cancelled hardware subscription concept | Apple Upgrade (U.S., announced July 2026) | iPhone Upgrade Program |
|---|---|---|---|
| Structure | Planned recurring subscription for an iPhone | Klarna-provided lease for iPhone and other Apple hardware | Replaced for U.S. customers by Apple Upgrade, subject to eligibility and transition terms |
| Payment type | Monthly fee; exact amount not stated | Monthly lease payments; exact terms depend on eligibility and the lease agreement | Current U.S. availability is not stated in the cited announcement |
| Annual upgrade promise | Intended to provide a new iPhone each year | Upgrade is available at the end of the lease term under Apple’s stated options | Program’s current status in other markets is not stated |
| End-of-term choices | Not established publicly | Upgrade, purchase outright with a one-time payment or return the device | Not stated in the cited material |
| Ownership | Would have been a service arrangement; final ownership terms were never published | You lease the device unless you exercise the purchase option | Not stated in the cited material |
| AppleCare | Not stated | Apple says customers can add an AppleCare subscription | Not stated in the cited material |
| Geographic availability | Not announced | United States announcement; eligibility and transition conditions apply | Replaced by Apple Upgrade for U.S. customers |
Can you lease an iPhone from Apple now?
U.S. customers may be able to use Apple Upgrade, subject to Apple and Klarna eligibility and the applicable transition terms. The arrangement is a lease. Before signing, check the displayed payment schedule, lease length, purchase amount, return conditions, damage or wear rules, taxes, and any credit requirements.
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- This phone is unlocked and compatible with any carrier of choice on GSM and CDMA networks (e.g. AT&T, T-Mobile, Sprint, Verizon, US Cellular, Cricket, Metro, Tracfone, Mint Mobile, etc.).
- Please check with your carrier to verify compatibility.
- The device does not come with headphones or a SIM card. It does include a generic (Mfi certified) charging cable.
- Tested for battery health and guaranteed to have a minimum battery capacity of 80%.
Apple says an AppleCare subscription can be added. That protection is separate from the lease itself, so review its price, coverage and cancellation terms rather than assuming it is included in the monthly payment.
Subscription, lease and installment financing are not the same
Hardware subscription
A subscription normally charges continuously for access to hardware or a replacement benefit. The cancelled Apple concept was reported as an annual-replacement subscription, but its ownership, return and damage rules were never disclosed.
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- This pre-owned product is not Apple certified, but has been professionally inspected, tested and cleaned by Amazon-qualified suppliers.
- There will be no visible cosmetic imperfections when held at an arm’s length.
- This product is eligible for a replacement or refund within 90 days of receipt if you are not satisfied.
- Product may come in generic Box.
Lease
A lease gives you use of a device for a defined term. Apple Upgrade’s stated end-of-term choices—upgrade, buy or return—are characteristic of a lease and do not automatically make you the owner.
Installment purchase
Installment financing spreads the purchase price over scheduled payments. Once all required payments are made, the customer generally owns the device under the financing contract. The cited Apple announcement does not provide current installment pricing or terms, so do not treat Apple Upgrade as an installment plan.
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- 6.1" Super Retina XDR OLED, HDR10, 800 nits (HBM), 1200 nits (peak), 2532x1170px at 460ppi, 4005mAh Battery
- 8GB RAM, Apple A18 6-core CPU (2 performance + 4 efficiency cores), Apple GPU 4-core, 16‑core Neural Engine
- Rear camera: 48MP, f/1.6, wide, Front Camera: 12MP, f/1.9, wide, iOS 18.3.1, upgradable to iOS 18.5
- Connectivity: Global 4G LTE, Sub-6 GHz 5G, LTE, Wi-Fi 6, Bluetooth 5.3, NFC, USB-C, Wireless Charging (7.5W). (does not have mmWave 5G or MagSafe or physical SIM card) - Dual eSIM Only
- Unlocked for freedom to choose your carrier. Compatible with both GSM & CDMA networks. The phone is unlocked to work with all GSM Carriers & CDMA Carriers Including AT&T, T-Mobile, Verizon, Straight Talk., Etc.
What happens to iPhones when customers upgrade?
A returned or traded-in iPhone can be inspected, refurbished, resold or recycled depending on its condition and the program’s logistics. Apple reported that 15.9 million devices and accessories were sent to new owners for reuse in 2024, showing the scale of reuse in its broader product cycle. That figure covers devices and accessories, not a forecast for Apple Upgrade or the cancelled service.
Keeping an older phone is also possible when a customer buys rather than returns it. Apple’s support policy says iPhones generally remain eligible for service and parts for at least five years after Apple stops distributing a model, subject to parts availability. “At least five years” is a support-policy baseline, not a guarantee that every repair or component will be available indefinitely.
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- Dynamic Island. A magical way to interact with iPhone. A16 Bionic chip with 5-core GPU
- Advanced dual-camera system. 48MP Main | Ultra Wide. Super-high-resolution photos (24MP and 48MP). Next-generation portraits with Focus and Depth Control. 4X optical zoom range
- Emergency SOS via satellite. Crash Detection. Roadside Assistance via satellite
- Up to 26 hours video playback. USB C, Supports USB 2. Face ID
What this means for your budget
- Compare total cost, not just the monthly figure: add every lease payment, taxes, AppleCare charge and end-of-term purchase amount.
- Decide whether you need annual upgrades: frequent upgrades may offer convenience, while keeping a phone for several years usually avoids repeated financing or lease commitments.
- Read the return standard: damage, missing accessories or late returns can affect what you owe under a lease.
- Check eligibility before planning around it: Apple Upgrade is a U.S. offering announced for eligible customers, not a worldwide replacement confirmed for every market.
- Value the device you already own: resale, trade-in or continued use may cost less than replacing it annually.
The bottom line
Apple’s proposed monthly iPhone subscription never became a public product. Work ended in late 2024, with the team reassigned amid reported software and regulatory issues but no single official cancellation explanation. In 2026, Apple’s U.S. Apple Upgrade gives eligible customers a different path: lease an iPhone through Klarna, then upgrade, buy or return it at the lease’s end.
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Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
