Apple is all set to launch a new device leasing programme in the US, changing the way customers buy its hardware. The new programme, named ‘Apple Upgrade ’, will debut on July 28. The feature will be available in most iPhone, iPad, Mac and Apple Watch models.
According to reports, Apple is partnering with fintech company Klarna to back the programme. The service will allow customers to access Apple devices through monthly payments instead of paying the full price upfront.
The programme is similar to a vehicle lease model. You can pay monthly instalments, upgrade to a newer device before the contract ends, pay off the device early, or return it at the end of the term.
The repayment duration will vary according to the products. For instance, iPhone and Apple Watch leases will be for two years. The lease period of iPads and Macs will be for three years. Apple may also advertise this program as being cheaper compared to some other financing programs.
Owning the product does not mean that you are its owner at the end of the payment term. Individuals who would like to have the ownership rights need to make an extra payment.
Klarna is expected to provide the financial backing for Apple Upgrade. Customers need a soft credit check to be eligible, and additional fees can be incurred in some cases. The program is accessible via the online store and Apple retail stores in the US. The programme can exclude several lower-priced products. These include:
The Apple Watch SE
Entry-level iPad
iPhone 16 and MacBook Neo
Business and education purchases may also remain outside the programme. However, there’s no official confirmation by Klarna or Apple of the launch. As of now, Apple is not taking new enrollments for the iPhone Upgrade Program. Existing users can carry on with the present program.
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