Apple launches 'flexible finance account' in UK, replacing iPhone upgrade program

California (Web Desk): Apple has introduced a new financing option called the "Flexible Finance Account" in the United Kingdom, which replaces the previously popular iPhone Upgrade Program.

This change will affect UK customers who were accustomed to the old program, which allowed users to pay a monthly fee and upgrade to the latest iPhone every year after completing 12 monthly payments.

The Flexible Finance Account is essentially a line of credit that gives customers more flexibility for future Apple Store purchases. A key feature of the new program is that it includes AppleCare+ at 0% financing, making it more attractive to iPhone buyers.

While many iPhones, including the iPhone 17 and iPhone 16, will still be available for interest-free financing over terms like 20 or 24 months, the new system introduces interest charges for financing longer-term products like iPads or the Apple Vision Pro. Financing for these items over 36 months will incur a 14.9% APR.

Apple has confirmed that the iPhone Upgrade Program will be phased out in the UK, with a message on its website stating: “We think you’ll love what’s next.” Customers currently enrolled in the old program are encouraged to continue their payments until they qualify for an upgrade, after which they will be switched to the new financing system.

The changes only apply in the UK, as the iPhone Upgrade Program will remain the same in the US and other markets. The Flexible Finance Account also offers one-time approval for future purchases, making it easier for customers to finance additional products without going through the approval process each time.

This new program reflects Apple's push to provide customers with more flexibility and affordable options for purchasing its wide range of products.