Story
Apple Launches 'Apple Upgrade' Device Leasing Program in US with Klarna
Summary
Apple has launched a new device leasing program in the U.S. called 'Apple Upgrade,' partnering with payments firm Klarna to offer monthly plans for its flagship hardware products.
Apple on Tuesday launched a new device leasing program in the United States, partnering with financial technology firm Klarna to offer flexible monthly payment options for its hardware. The program, named Apple Upgrade, aims to make the company's premium products more accessible to a wider range of consumers.
Program Details
The new leasing plan replaces Apple's existing iPhone Upgrade Program and iPhone Payments offerings in the U.S., consolidating them into a single, broader service. According to the announcement, the program covers iPhones, Macs, iPads, and the Apple Watch.
Key features of the Apple Upgrade program include:
- Lease Terms: iPhones and Apple Watches are available on 12- or 24-month plans, while Macs and iPads can be leased for 24 or 36 months.
- Starting Prices: Monthly payments begin at $17.99 for an iPhone, $11.99 for an Apple Watch or iPad, and $24.99 for a Mac.
- Credit Check: Klarna will conduct a soft credit check for applicants, which Apple stated will not affect their credit score.
AdAt the conclusion of the lease term, customers will have the option to return the device, purchase it with a one-time payment, or upgrade to a newer model. The program is available through Apple's website, its mobile app, and at its U.S. retail locations.
Market Impact and Consumer Incentives
This partnership marks a significant expansion of Apple's push into consumer financing, a strategy designed to lower the upfront cost barrier for its high-end devices and encourage more frequent upgrades, thereby strengthening customer loyalty within its ecosystem. For Klarna, a prominent player in the "buy now, pay later" (BNPL) space, this collaboration represents a major endorsement and integration with one of the world's largest consumer technology companies.
Apple is also offering incentives to drive adoption. Customers can lower their monthly payments by trading in an existing device. Additionally, those who use an Apple Card to make their monthly lease payments will receive 3% Daily Cash back. Existing members of the iPhone Upgrade Program will be able to transition to the new plan once they are eligible for an upgrade.
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