Apple reportedly plans to launch a device leasing programme called Apple Upgrade in the United States on July 28. The service would let customers spread payments for eligible iPhones, iPads, Macs and Apple Watches across multiple years, with financing provided by Klarna.
Neither Apple nor Klarna has publicly confirmed the reported launch. Both companies did not immediately respond to requests for comment, according to Reuters.
Customers Could Keep, Return or Upgrade Devices
Apple Upgrade would operate more like a lease than a conventional instalment plan. Customers could pay off a device early, exchange it for a newer model before the term ends, return it or keep it after completing the scheduled payments.
Reported lease periods would run for up to 24 months on iPhones and Apple Watches. Macs and iPads would be available through agreements lasting up to 36 months.
A soft credit check would reportedly be required. Some transactions may also include additional fees, though specific charges and ownership terms have not been disclosed.
Some Apple Products Would Be Excluded
Most current Apple devices would qualify, but the programme would exclude several lower-priced products. Reported exceptions include the iPhone 16, Apple Watch SE, entry-level iPad and MacBook Neo, while education and business purchases would also be ineligible.
AppleCare would not be included in the monthly price. This differs from Apple’s existing iPhone Upgrade Programme, which bundles AppleCare+ with eligible iPhone payments.
Apple reportedly plans to stop accepting new customers for its current iPhone Upgrade Programme and standard iPhone financing options as Apple Upgrade becomes available. The new service would be offered through Apple’s website and physical retail stores.
Klarna Would Assume Financing Risk
Klarna would provide the financial backing and assume the credit risk associated with customer leases. The payments company already supports Apple purchases through its Apple retail service and appears among the deferred-payment providers available through Apple’s financing options.
The reported launch follows higher prices for several Apple products as memory and storage component costs rise alongside demand from AI data centres. Apple is expected to promote the programme as providing lower monthly payments than its existing financing choices.
Featured image credits: Wikimedia Commons
For more stories like it, click the +Follow button at the top of this page to follow us.