Apple is reportedly preparing to launch a subscription-style leasing service that could reshape how customers pay for iPhones, Macs, iPads and Apple Watches.
Bloomberg News reported that Apple Upgrade will launch in the United States on July 28. Swedish financial technology company Klarna will finance the programme.
Customers will make monthly payments and gain several options during or after the agreement. They could upgrade early, pay off the remaining balance or keep the device when the lease ends.
Apple and Klarna have not publicly confirmed the service. Neither company immediately responded to Reuters’ requests for comment.
How Apple Upgrade Would Work
The reported programme resembles vehicle leasing more than traditional device financing.
Apple Upgrade will reportedly offer 24-month leases for iPhones and Apple Watches. Macs and iPads will usually carry 36-month terms. Applicants will undergo a soft credit check before approval.
Customers will reportedly access the service through Apple’s US retail stores and online shop. Apple plans to market it as offering lower monthly payments than its existing financing options.
The company also plans to stop accepting new customers into its iPhone Upgrade Program and standard iPhone financing plans. Existing arrangements would give way to Apple Upgrade for new applicants.
Apple’s current iPhone Upgrade Program spreads payments across 24 months. Customers can trade in their device and upgrade after making 12 payments. The plan also includes AppleCare+ with Theft and Loss.
Apple Upgrade will not include AppleCare, meaning customers would need to purchase device protection separately.
Which Apple Devices Will Qualify
The service will reportedly cover most iPhone, Mac, iPad and Apple Watch models. However, Apple plans to exclude several entry-level products.
Those devices include the Apple Watch SE, base-model iPad, iPhone 16 and MacBook Neo. Purchases through Apple’s business and education channels will also remain outside the programme.
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The wider coverage would distinguish Apple Upgrade from the current programme, which focuses only on iPhones.
Apple already offers interest-free Apple Card Monthly Installments for eligible iPhones, Macs, iPads and Apple Watches. However, those plans focus on eventual ownership rather than a lease-style arrangement.
Why Apple Is Changing Course
The reported launch follows Apple’s earlier attempt to create a dedicated hardware subscription service.
Bloomberg first reported that project in 2022. Apple later shelved it after software problems, regulatory concerns and repeated delays.
This time, Apple will rely on Klarna rather than financing the programme itself. That arrangement would place much of the credit risk with the financial services company.
The move also comes as Apple faces higher hardware costs. The company recently raised prices on iPads, MacBooks and several other devices as memory and storage chip prices increased. The iPhone largely escaped those increases.
A leasing model could help Apple encourage faster upgrades as customers keep premium smartphones and computers for longer. It could also make costly devices appear more affordable through lower monthly payments.
However, customers will need to compare the full leasing cost with traditional financing and outright ownership. Monthly prices and possible early-upgrade fees remain unclear.
