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Apple is preparing to launch a new hardware leasing service called Apple Upgrade in the United States on July 28, according to Bloomberg News. The subscription-style program would allow customers to lease eligible Apple devices through monthly payments before upgrading, purchasing or returning them at the end of the lease. Backed by Klarna, the service would replace Apple’s traditional financing model with a leasing program offering lower monthly payments and greater flexibility. Apple has not officially announced the program.
Details
- How Apple Upgrade works: Customers would make monthly lease payments for eligible devices and have the option to pay off a device early, upgrade before the lease ends, purchase it after completing payments or return it when the lease expires.
- Eligible devices: The service is expected to cover most iPhones, iPads, Macs and Apple Watches. Bloomberg reported that the Apple Watch SE, entry-level iPad, iPhone 16 and MacBook Neo would be excluded.
- Lease terms: Bloomberg reported that iPhones and Apple Watches would have 24-month lease terms, while Macs and iPads would be offered on 36-month leases.
- Klarna partnership: Klarna would provide financing for the program, allowing Apple to expand consumer financing without taking on the credit risk itself.
- Replacing current plans: Apple reportedly plans to stop accepting new enrollments in its existing iPhone Upgrade Program and standard financing options as it transitions to Apple Upgrade. Unlike the current iPhone Upgrade Program, AppleCare would not be included.
- Why it matters: The reported program follows recent price increases on several Apple products and could make higher-priced devices more affordable through lower monthly payments while encouraging more frequent upgrades.
What to Watch
Apple has not officially announced the program or confirmed its reported July 28 launch date. Investors will watch for pricing details, an official rollout timeline, how quickly Apple transitions away from its existing financing programs and whether Apple Upgrade expands beyond the U.S.
Meanwhile Klarna shares rose after reports of the partnership, while Apple shares also edged higher. Analysts said the deal could strengthen Klarna’s position in U.S. consumer finance and expand its merchant network, underscoring the significance of the partnership for both companies.
