Apple Eyes Hardware Subscription Model via Klarna Partnership

Apple may introduce a new device subscription service known as Apple Upgrade as early as July 28, according to reporting from Engadget. The program would allow customers to acquire various iPhone, Mac, iPad, and Apple Watch models through a subscription rather than a lump-sum purchase.

As reported by Bloomberg via Engadget, Apple is partnering with Klarna to facilitate the program. This collaboration allows Apple to provide hardware subscriptions without assuming the associated financial responsibilities. Klarna has served as a "buy now, pay later" option within Apple Pay since 2024.

Under the proposed terms, leases would last 24 months for Apple Watches and iPhones, and 36 months for Macs and iPads. Users would be required to undergo a soft credit check. Participants may choose to return the device, keep it after the lease expires, or pay the balance early. Engadget notes that while the service offers flexibility, it may involve extra fees. Additionally, the program will not support AppleCare, and certain devices—including the base iPad, Apple Watch SE, MacBook Neo, and iPhone 16—will be ineligible.

Apple may discontinue new sign-ups for standard financing and the iPhone Upgrade Program to streamline these offerings. The service is expected to debut initially in the U.S. This move follows recent price hikes of at least $100 on several devices, with the M3 Ultra Mac Studio seeing an increase of up to $1,300. Engadget reports that the subscription model could mitigate the impact of these rising costs for consumers while generating recurring revenue for Apple.