Apple has officially terminated its popular iPhone Upgrade Program in the United Kingdom, marking a significant shift in how British consumers finance their premium smartphones. The tech giant is replacing the program with a new financing arrangement that comes with higher monthly costs and notably excludes the previously bundled AppleCare+ protection plan.
Partnership Shift: From Barclays to Creation
The company is ending its longstanding partnership with Barclays Bank and transitioning to Creation, a Belfast-based consumer finance specialist, for its newly launched "Flexible Finance Account." This strategic move represents a complete overhaul of Apple's device financing ecosystem in the UK market.
Financial Implications for Consumers
The change translates to slightly increased expenses for UK customers seeking similar services. According to user reports and comparative analysis, a 256GB iPhone Pro Max model with AppleCare+ theft and loss protection now carries a monthly payment of £71.90 under the Creation arrangement. This represents a noticeable increase from the previous £68.45 monthly charge under the Barclays-administered program.
New Financing Structure and Options
The Flexible Finance Account introduces two distinct payment pathways for consumers:
- 20-Month Plan: This option allows customers to upgrade their device after completing just 11 monthly payments
- 30-Month Plan: This extended arrangement permits upgrades after 23 monthly installments
While both plans maintain the zero percent interest feature that characterized the previous program, they fundamentally differ in their approach to device protection. Neither option includes AppleCare+ coverage automatically—consumers must now add this protection separately, creating additional steps and potentially higher overall costs.
Streamlined Application Process
The new system does bring one significant improvement: a completely digital application experience. Under the previous Barclays partnership, customers were required to visit Apple Stores in person, complete lengthy applications on dedicated iPads, and undergo the entire process—including hard credit checks—annually when upgrading devices.
The revamped system now enables prospective buyers to apply entirely online, eliminating the need for physical store visits and potentially reducing application time substantially.
Market Context and Consumer Impact
For existing program members, the transition requires no immediate action. Current participants will continue making their scheduled payments until reaching their next eligible upgrade window, at which point they will automatically transition to the new financing structure.
Apple has confirmed that the iPhone Upgrade Program continues unchanged in other global markets, including the United States. In the UK specifically, Creation and PayPal Credit now exclusively handle all Apple device financing, completely replacing Barclays across Apple's entire product lineup.
Consumer Response and Alternatives
For shoppers who valued the previous program's simplicity and inclusive AppleCare+ coverage, this transition represents a noticeable step backward in customer experience. The combination of modest price increases and unbundled protection plans might encourage some consumers to explore alternative financing options, including standard interest-free credit cards that offer greater flexibility.
The move reflects Apple's ongoing adjustments to its financial services strategy in different regional markets, balancing operational partnerships with consumer accessibility and protection offerings.
