Apple to Launch 'Apple Upgrade' Device Leasing Program With Klarna [Report]

Apple is preparing to introduce a new device leasing program backed by Klarna, marking one of the biggest changes to how it sells its devices. The new service, dubbed Apple Upgrade, is reportedly scheduled to launch on July 28 and will cover most of the company's major product lines.



According to Bloomberg, the service will function much like a car lease. Customers can choose to return their device when the term ends, pay off the remaining balance to keep the hardware, or upgrade to a newer model early. Some of these transactions will carry additional fees. Leases for the iPhone and Apple Watch are set to span 24 months, while Mac and iPad agreements will run for 36 months. Enrollment requires a soft credit check. At launch, the program will be available exclusively in the United States through both Apple's retail stores and its website.


To pave the way for the new initiative, Apple is planning to discontinue new enrollments for its existing financing options, including the long-running iPhone Upgrade Program. Apple Upgrade differs from the iPhone Upgrade Program in several key ways. Most significantly, the new leasing agreements will not automatically include AppleCare, requiring customers to purchase coverage separately if they want it.

Not every product will qualify for the new leasing terms. Devices excluded from the program include the iPhone 16, the entry-level iPad, the Apple Watch SE, and the MacBook Neo. The service is strictly for consumer purchases, leaving out transactions made through Apple's education and business channels.

Apple had previously explored launching an in-house hardware subscription service but reportedly scrapped the effort in 2024. By teaming up with Klarna, Apple can offer lower monthly payments without taking the leases onto its own balance sheet.

The shift comes just weeks after Apple raised prices across its Mac, iPad, and smart home lineups in response to a severe global memory shortage. Offering lower monthly lease payments could help offset those higher upfront costs and sustain sales, especially if Apple raises iPhone prices again with the iPhone 18 lineup this September.