Bloomberg's Mark Gurman first reported the plan, with Klarna signing on as the financial backer.It doesn't take much to work out why now.
Apple raised prices by hundreds of dollars across Macs, iPads and other devices last month, blaming an industry-wide memory shortage that the AI data-centre boom has made considerably worse.
Apple Upgrade lands right in that gap, and Apple reportedly plans to pitch it as the cheaper monthly option versus its existing financing.Lease terms run 24 months for iPhones and Apple Watches, and 36 months for Macs and iPads.
Business and education purchases are out as well.Apple will stop taking new sign-ups for the iPhone Upgrade Program and standard financing to clear the runway.
It's worth remembering Apple built and then killed its own in-house hardware subscription in 2024.
FILE - The iPhone 17 Pro is displayed during an announcement of new products at Apple Park on Tuesday, Sept. 9, 2025, in Cupertino, Calif. (AP Photo/Godofredo A. Vásquez, File)
How Apple Upgrade works, and which devices don't qualify
Apple is preparing to launch Apple Upgrade, a lease-to-own program for most of its hardware lineup, on July 28 in the US. The service will cover most iPhone, Mac, iPad and Apple Watch models, and it works less like a payment plan and more like a car lease—you pay monthly, and at the end of the term you keep the device, hand it back, or roll into something newer. Bloomberg's Mark Gurman first reported the plan, with Klarna signing on as the financial backer.It doesn't take much to work out why now. Apple raised prices by hundreds of dollars across Macs, iPads and other devices last month, blaming an industry-wide memory shortage that the AI data-centre boom has made considerably worse. The iPhone escaped that round, but nobody expects it to escape September. Apple Upgrade lands right in that gap, and Apple reportedly plans to pitch it as the cheaper monthly option versus its existing financing.Lease terms run 24 months for iPhones and Apple Watches, and 36 months for Macs and iPads. Signing up requires a soft credit check. Paying off early, upgrading mid-term or keeping the device at the end are all on the table, though in some cases those moves come with an extra fee. AsThere are gaps. AppleCare is not bundled in, unlike the current iPhone Upgrade Program—a notable omission given AppleCare pricing has also crept up.Cheaper hardware is excluded too: the Apple Watch SE, the entry-level iPad, the iPhone 16 and the fast-selling MacBook Neo are all ineligible. Business and education purchases are out as well.Apple will stop taking new sign-ups for the iPhone Upgrade Program and standard financing to clear the runway. It's worth remembering Apple built and then killed its own in-house hardware subscription in 2024. Partnering with Klarna gets Apple the same customer lock-in without carrying the credit risk.
