Apple has introduced a US leasing program that lets eligible customers make monthly payments on an iPhone, iPad, Mac or Apple Watch before returning, upgrading or purchasing the device at the end of the term.
Called Apple Upgrade, the program is provided by Klarna and is available through Apple’s online store, Apple Store app and US retail locations. Customers must complete an application with Klarna, which includes a soft credit check that does not affect their credit score.
Monthly Payments Start at $11.99
Apple Upgrade offers 12-month and 24-month leases for iPhone and Apple Watch models. Mac and iPad customers can choose between 24-month and 36-month terms.
Advertised monthly prices start at $17.99 for an iPhone, $11.99 for an Apple Watch, $24.99 for a Mac and $11.99 for an iPad. Eligible products include most current iPhone models, MacBook Air, MacBook Pro, iMac, Mac Studio, iPad Pro, iPad Air, iPad mini and selected Apple Watch models.
AppleCare is not included in the lease payment. Customers can purchase coverage separately, while people who return damaged devices without eligible coverage may be charged a damage fee.
Leased iPhones must be activated with AT&T, T-Mobile or Verizon. Mac, iPad and Apple Watch leases do not require a carrier connection.
Customers Can Upgrade, Return or Purchase
At the end of the initial term, customers can return the device and start a new lease, return it and leave the program, or buy it through a one-time payment managed in the Klarna app.
Customers have six months after the initial lease term to decide. Monthly payments continue during that period, and Klarna will automatically charge the purchase option fee if no action is taken before the extension ends.
Early upgrades are available, but customers must pay an early termination fee covering their remaining lease payments and any applicable damage charges. A returned device must be in good working condition and sent back within 14 days of receiving the replacement.
Trade-Ins Can Reduce Initial Payments
Customers can use Apple Trade In when first joining Apple Upgrade. The estimated trade-in credit is distributed across the monthly payments during the initial lease term.
Apple Card users can earn 3% Daily Cash when using the card for eligible lease payments. Apple Pay and PayPal are not accepted as payment methods for the lease itself.
The new program arrives as Apple ends its existing iPhone Upgrade Program. Current members can continue making their remaining payments, but Apple is directing customers toward Apple Upgrade, carrier offers, standard financing or one-time purchases for their next device.
Apple Card Monthly Installments have not been discontinued. Apple continues to advertise the 0% APR financing option for eligible products alongside the new leasing program.
Featured image credits: Wikimedia Commons
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