According to 9to5Mac, Apple has discontinued its iPhone Upgrade Program in the United Kingdom, stating the program is “coming to an end” as it starts a “new chapter for upgrades.” The company is winding down its partnership with Barclays, which previously backed the program. In its place, Apple has launched a new “Flexible Finance Account” in partnership with a Belfast-based consumer finance company called Creation. This new account offers plans like a 20-month option that allows an upgrade after 11 payments, or a 30-month plan for upgrading after 23 payments. Crucially, unlike the old program, this new financing does not bundle AppleCare+ coverage with the loan. Existing customers are told to keep making payments and will use the new system for their next upgrade.
The partner switch
Here’s the thing: this move is way more about banking than it is about iPhones. For years, Barclays was the engine behind the upgrade program in the UK. Now, Apple‘s shifting that business to Creation. I think that’s the real story. Why the change? Well, we can only speculate. Maybe Barclays wanted different terms. Maybe Apple wanted more control or a better revenue split. Partnering with a smaller, specialized finance house like Creation probably gives Apple a lot more leverage in the relationship. It’s a quiet but significant shift in how they manage the financial plumbing of their biggest product.
A less seamless model?
But let’s talk about what this actually means for customers. The old iPhone Upgrade Program was pretty slick—it bundled the phone, AppleCare+, and the upgrade path into one tidy, predictable annual payment. The new Flexible Finance Account seems more… flexible, sure, but also more fragmented. You now have to actively choose a plan (20-month or 30-month), and AppleCare+ is a separate purchase. That’s extra friction. For a company obsessed with seamless experiences, this feels like a step back. The benefit is more choice, but sometimes choice is just complexity in disguise. Will customers actually love what’s next, or will they miss the simplicity?
The bigger finance play
So what’s Apple’s game here? Look, financing is a huge profit center. By moving to this “Flexible Finance Account,” which is essentially a line of credit, Apple is likely building a more versatile financial product. It’s not just for iPhone upgrades anymore; the language says it’s for “your next Apple device.” This could be the foundation for financing Macs, iPads, Vision Pros—you name it. It’s a platform play. They’re moving from a single-product subscription to a broader store credit system. From a business perspective, that’s probably smarter. It locks you deeper into the ecosystem’s financial orbit, not just its product cycle.
The US watch
Now, the big question for everyone else: does this signal changes for the iPhone Upgrade Program in the US? Probably not immediately. The US program, partnered with Citizens One, is a much bigger beast. But you have to wonder if this UK move is a test. If this new, more flexible account model works well and is more profitable, why wouldn’t they consider rolling it out elsewhere? For now, if you’re a fan of the simple upgrade path, just hope your market’s banking partner is happy. Because as we see in the UK, these deals can change. For more tech business insights, you can follow the reporter on Threads, Twitter, or Bluesky.
