Apple $AAPL launched a device leasing program on Tuesday called Apple Upgrade, offered in partnership with Klarna, covering iPhone, Apple Watch, Mac, and iPad at Apple Store locations and online in the United States.
The program, called Apple Upgrade, covers iPhone, Apple Watch, Mac, and iPad and replaces the existing iPhone Upgrade Program
Credit: Apple
Apple $AAPL launched a device leasing program on Tuesday called Apple Upgrade, offered in partnership with Klarna, covering iPhone, Apple Watch, Mac, and iPad at Apple Store locations and online in the United States.
Monthly lease payments start at $17.99 for iPhone, $11.99 for Apple Watch, $11.99 for iPad, and $24.99 for Mac, the company said. iPhone and Apple Watch are available on 12- or 24-month terms, while Mac and iPad carry 24- or 36-month options. No security deposit is needed, and the application involves only a soft credit check, leaving an applicant's credit score unaffected.
When a lease term ends, customers have three paths: sign a new lease on an updated device, buy the current device outright, or simply hand it back and walk away. Customers can track billing schedules and remaining payments through the Klarna app. Trading in a current device through Apple Trade In can lower monthly payments, and customers who pay with Apple Card earn 3% Daily Cash back on lease payments.
With the launch of Apple Upgrade, Apple said it is discontinuing the iPhone Upgrade Program and iPhone Payments in the United States. Customers currently enrolled in the iPhone Upgrade Program will have the option to lease a new device through Apple Upgrade, finance through Apple Card Monthly Installments, purchase outright, or use carrier financing, the company said.
Karen Rasmussen, Apple's vice president of the Apple Store online, called the program "a more flexible way to pay for the products they love," in a statement.
Not all devices qualify. The iPhone 16, MacBook Neo, and several other models are excluded from the program, the company said.
The announcement comes roughly a month after Apple raised starting prices on five MacBook and iPad models by $100 to $300, citing surging memory and storage costs. Those increases followed remarks by CEO Tim Cook, who described the component cost environment as a 'hundred-year flood' and said absorbing the full impact was no longer viable. Analysts have anticipated further price increases on iPhones when the next generation launches in September.
By quoting a monthly lease rate rather than a total purchase price, Apple redirects attention away from the full cost of the device. The iPhone 17 Pro illustrates the range: the company prices it at $1,099 to buy outright, while lease payments run $31.99 monthly over two years or $45.99 monthly over one year, according to Apple.
Apple is scheduled to report third-quarter earnings on Thursday, according to CNBC.
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