Apple reportedly plans lease-style upgrade program for devices
Bloomberg says Apple Upgrade will start July 28 with Klarna financing for many iPhones, Macs, iPads and Apple Watches.
By Hana Yoshida · Markets Reporter
2 min read
Apple is preparing a new lease-style buying program for many of its devices, Bloomberg’s Mark Gurman reported, a shift that could change how customers pay for iPhones, Macs, iPads and Apple Watches. The reported program would arrive as The Verge says component and RAM shortages have pushed prices upward across consumer tech.
Gurman reported that the program, called Apple Upgrade, is expected to launch on July 28. According to Bloomberg, it would replace Apple’s existing iPhone Upgrade Program and standard financing for new iPhones.
The plan would work in a way similar to a car lease, Gurman reported. Customers would be able to move to a new device before the lease ends, or choose at the end of the term to keep the product or return it, according to Bloomberg.
Klarna would serve as the financial backer for Apple Upgrade, Bloomberg reported. Gurman said customers would need to pass a soft credit check to enroll.
How the reported terms would work
Bloomberg reported that Apple Upgrade would cover most new purchases across the iPhone, Mac, iPad and Apple Watch lines. The lease length would vary by product category, according to Gurman.
- Bloomberg says iPhones and Apple Watches would be offered on 24-month leases.
- Bloomberg says iPads and Macs would be offered on 36-month leases.
Some lower-cost products would be excluded, Gurman reported. The Verge, citing Bloomberg, listed the base iPad, iPhone 16, Apple Watch SE and MacBook Neo among the devices that would not qualify.
The reported Apple Upgrade program would also differ from Apple’s current iPhone Upgrade Program in one major way. Gurman reported that AppleCare would not be included with the new leases, while The Verge noted that AppleCare is also becoming more expensive.
Price pressure around Apple hardware
The reported launch follows a recent round of Apple price increases. The Verge reported that Apple raised prices on nearly all of its products about a month before the planned Apple Upgrade launch.
The iPhone was not part of that earlier price increase, according to The Verge. The publication reported that the iPhone 18 Pro line could set higher prices when it is expected to arrive later this year.
Apple has not been reported here as announcing the program publicly. Bloomberg’s report frames Apple Upgrade as a pending change to the way Apple sells and finances its hardware, with Klarna taking a central role in the new payment structure.
This story draws on original reporting from The Verge.