Apple is preparing to launch a leasing program that will allow customers to rent major devices such as iPhones, Macs, and iPads for a set period, with options to return or purchase the devices at the end of the contract.
Bloomberg reported on July 21, citing sources familiar with the matter, that Apple plans to introduce its new device leasing service, called 'Apple Upgrade,' on July 28.
The Apple Upgrade program will cover most of Apple's products, including iPhones, Macs, iPads, and Apple Watches. The service will initially be available in the United States through both Apple’s physical stores and online.
Apple is expected to partner with Klarna Group to manage the program, with Klarna providing the necessary financial support for leasing.
The new service is anticipated to operate similarly to a subscription model. Users will have the option to pay off the device early during the contract period or switch to a new model before the contract expires. At the end of the leasing period, customers can either purchase the device or return it, similar to a car lease. However, early upgrades or buyouts may incur additional fees.
The leasing period is set at 24 months for iPhones and Apple Watches, and 36 months for Macs and iPads. Participants will need to undergo a soft credit check that does not affect their credit score to gain approval for the program.
Apple plans to highlight that the new service will lower monthly payments compared to existing installment plans. It is also reported that the current 'iPhone Upgrade Program' and standard installment plans will be discontinued in conjunction with the launch of Apple Upgrade.
Unlike the previous iPhone Upgrade Program, the new service will not include AppleCare, and certain products such as the Apple Watch SE, budget iPads, iPhone 16, and MacBook Neo will also be excluded. Purchases made by businesses and educational institutions will not be eligible for the program.
This initiative comes just weeks after Apple raised prices on some products, including Macs and iPads, in response to a widespread memory supply shortage. The company is also expected to increase iPhone prices when it unveils new models in September. The leasing program appears to be a strategy to counter anticipated demand decline due to these price hikes.
Previously, Apple had considered offering iPhones and other hardware on a subscription basis but abandoned that plan in 2024. Bloomberg noted that this time, by collaborating with Klarna, Apple can expand its leasing sales while avoiding direct financial burdens.
* This article has been translated by AI.
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