Apple is about to change how you pay for its products, and it’s not doing it alone. The company plans to launch Apple Upgrade on July 28, a Klarna-backed leasing program covering most iPhone, Mac, iPad and Apple Watch models, Bloomberg reports. Klarna shares jumped as much as 11% on the news.
Unlike Apple’s current financing program, which allowed you to make payments towards eventually owning the device, Apple Upgrade is a true lease, more like a car. iPhone and Apple Watch terms run 24 months, Mac and iPad run 36, and at the end, customers can pay it off, upgrade early, or hand the device back entirely. Paying off or upgrading early can trigger an extra fee, and unlike the current program, Apple Upgrade doesn’t include AppleCare and requires a soft credit check.
The timing isn’t a coincidence. Apple just raised prices across Macs and iPads due to a memory shortage, and it’s expected to hike iPhone prices again in September. Rather than build its own leasing business, which it scrapped in 2024, Apple is letting Klarna absorb the financial risk instead.
Apple is about to change how you pay for its products, and it’s not doing it alone. The company plans to launch Apple Upgrade on July 28, a Klarna-backed leasing program covering most iPhone, Mac, iPad and Apple Watch models, Bloomberg reports. Klarna shares jumped as much as 11% on the news.
Unlike Apple’s current financing program, which allowed you to make payments towards eventually owning the device, Apple Upgrade is a true lease, more like a car. iPhone and Apple Watch terms run 24 months, Mac and iPad run 36, and at the end, customers can pay it off, upgrade early, or hand the device back entirely. Paying off or upgrading early can trigger an extra fee, and unlike the current program, Apple Upgrade doesn’t include AppleCare and requires a soft credit check.
The timing isn’t a coincidence. Apple just raised prices across Macs and iPads due to a memory shortage, and it’s expected to hike iPhone prices again in September. Rather than build its own leasing business, which it scrapped in 2024, Apple is letting Klarna absorb the financial risk instead.