Apple Set to Launch 'Apple Upgrade' Device Leasing Program
Apple is launching a new device leasing program called 'Apple Upgrade' on July 28 in the United States in an effort to boost sales, according to a report from Bloomberg News. This new service arrives as Apple has raised prices on its iPads, MacBooks, and other devices—excluding the iPhone. The company is no longer able to shield customers from surging memory and storage chip costs, which are currently being driven by the AI industry's massive data-center buildout.
Partnering with Klarna for Subscriptions
Apple Upgrade will support most iPhone, Mac, iPad, and Apple Watch models, and the company is officially partnering with the Klarna Group, who will act as the financial backer for the program.
The new initiative will function as a subscription service, giving users significant flexibility. According to the report, users will be allowed to:
Pay off their device early.
Switch to a new model before their term ends.
Retain the device after the leasing period concludes.
Apple intends to aggressively market the program as offering lower payments than its existing financing options. The service will be made available to customers in both Apple's physical retail stores and online.
Replacing Existing Financing Plans
To clear the way for this new initiative, Apple plans to end new enrollments in its current iPhone payment plans, which include the existing iPhone Upgrade Program and its standard financing options.
Consumers should note a few major differences and exclusions with the new service:
Unlike the current iPhone Upgrade Program, the new Apple Upgrade will not include AppleCare.
Some entry-level devices will not be eligible for the program, including the Apple Watch SE, the entry-level iPad, the iPhone 16, and the MacBook Neo.
Purchases made for business and education purposes will also be excluded from the leasing program.
Both Apple and Klarna have not yet responded to requests for comment regarding the upcoming program.