Apple Reportedly Shifts to Lease-to-Own Model with New 'Apple Upgrade' Program
AI-generated image · US National Wire
According to Bloomberg, the lease-to-own program launching July 28 will replace standard iPhone financing and cover most new devices, backed by Klarna.
Apple is reportedly launching a lease-to-own initiative called "Apple Upgrade," according to reporting from The Verge citing Bloomberg's Mark Gurman. Slated for a July 28 launch, the program replaces standard financing and the existing iPhone Upgrade Program, expanding lease options to most new iPads, Macs, and Apple Watches in addition to iPhones.
Under the new structure, Apple will offer 24-month leases for Apple Watches and iPhones, and 36-month leases for Macs and iPads. The program will be backed financially by Klarna and will require a soft credit check for participants. According to The Verge, the model functions similarly to a car lease, allowing users to return the device, keep it, or upgrade to a newer model early.
Not all hardware is eligible for the program. The Verge reports that budget-friendly options—including the iPhone 16, the base iPad, the Apple Watch SE, and the MacBook Neo—will be excluded. Additionally, the Apple Upgrade program will not include an AppleCare subscription, a service that is reportedly becoming more expensive.
This strategic pivot arrives as component and RAM shortages drive hardware prices higher. The Verge notes that Apple recently raised prices on nearly all of its products, and while the iPhone was exempt from those hikes, the upcoming iPhone 18 Pro series is expected to launch later this year with potentially higher pricing.