Apple has launched a new leasing program in the U.S., allowing customers to lease iPhones, Macs, iPads, and Apple Watches through a partnership with Klarna. The program, called Apple Upgrade, replaces the company's existing iPhone Upgrade Program and iPhone Payments offering.
Core Facts & Immediate Action
Apple Upgrade offers monthly leasing plans starting at $17.99 for an iPhone, $11.99 for an Apple Watch or iPad, and $24.99 for a Mac. Customers can lease devices for 12, 24, or 36 months, depending on the product. At the end of the lease, customers can return the device, buy it outright, or upgrade to a newer model. The program is available through Apple's website, app, and U.S. retail stores.
Deeper Dive & Context
Leasing Terms and Flexibility
The program includes a soft credit check by Klarna, which does not affect the customer's credit score. Customers can reduce monthly payments by trading in an existing device and earn 3% cash back when paying with an Apple Card. Late payments will not incur fees, but leases may be terminated after three months of missed payments.
Market and Financial Context
The launch comes amid rising hardware prices across the tech industry, driven by a global memory crunch. Apple recently raised prices for MacBooks and iPads, with some models increasing by over $1,000. Analysts expect iPhone price hikes later this year. The leasing program may encourage customers to replace devices more frequently, as the average iPhone replacement cycle has stretched to nearly four years.
Customer Considerations
The program may appeal to customers who prefer lower monthly payments and frequent upgrades. However, those who keep devices for several years may find leasing less cost-effective. The program also allows existing members of Apple's iPhone Upgrade Program to transition to the new leasing plan when eligible.