Apple is reportedly set to launch a new device leasing service, Apple Upgrade, in the US on July 28, allowing customers to use iPhones, Macs, iPads and Apple Watches through monthly payments instead of buying them outright, according to a Bloomberg report.
The programme is expected to cover most iPhone, Mac, iPad and Apple Watch models. Similar to a car lease, Apple Upgrade will let customers use devices through monthly payments instead of paying the full price upfront. The lease term is reportedly set at 24 months for iPhones and Apple Watches, and 36 months for Macs and iPads.
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At the end of the lease period, customers will reportedly be able to pay the remaining balance to keep the device, upgrade to a newer model, or return it and end the lease.
Klarna Partnership and Programme Availability
Apple has partnered with financial services company Klarna Group to back and finance the new leasing initiative. Klarna will handle the financing part, which means Apple will not have to take on all the financial risk.
The service is expected to be available through Apple's website and its retail stores in the US.
Replacement of Existing Financing Options
To make room for the new Apple Upgrade initiative, the company plans to phase out new enrolments in its existing iPhone payment structures, including the iPhone Upgrade Programme and standard financing options.
Unlike the existing iPhone Upgrade Programme, the new service will reportedly not include AppleCare protection. Several lower-priced and entry-level products, including the Apple Watch SE, base iPad, iPhone 16, and MacBook Neo, are expected to be excluded. Business and education purchases will also reportedly not qualify for the programme, as per the reports.
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Reason Behind the Move
The reported launch comes as Apple faces rising production costs, particularly due to increasing prices of memory and storage chips driven by demand from artificial intelligence data centres. The company has already raised prices for some products, including iPads and MacBooks, while keeping recent iPhone pricing unchanged.
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