Apple and Klarna Partner for New Device Leasing Programme
Apple is launching a Klarna-backed device leasing programme on July 28 to offer lower monthly payments on iPhones, Macs, iPads, and Watches. The subscription service replaces traditional financing options amid rising component costs, though it excludes AppleCare and select entry-level devices.
Apple Inc. is preparing to launch a new device leasing initiative titled Apple Upgrade, marking a major transformation in how the technology giant distributes its hardware. Scheduled to roll out initially in the United States on 28 July, the subscription-style service will support a broad range of iPhones, Macs, iPads, and Apple Watches.
As per a report by Bloomberg, Apple is partnering with fintech firm Klarna Group Plc to act as the primary financial backer for the scheme. This collaboration enables Apple to provide hardware leasing options to consumers via physical retail locations and online channels without taking on direct financial risk on its own balance sheets. Instagram New Feature Update: Meta-Owned Platform Now Lets Users Swap Music on Existing Posts and Carousels.
Structure of the Leasing Terms
The programme functions similarly to a traditional vehicle lease. Customers enter into fixed terms consisting of 24 months for iPhones and Apple Watches, and 36 months for Macs and iPads. Applicants will undergo a soft credit check to qualify for the monthly payment plans.
Throughout the duration of the agreement, users retain the flexibility to pay off the hardware early, upgrade to a newer model ahead of schedule, or return the device at the end of the term. Certain actions, such as early upgrades, may incur additional administrative fees. To accommodate the new rollout, Apple intends to discontinue new customer enrolments for its legacy iPhone Upgrade Program and standard financing options.
Context and Market Impact
The introduction of Apple Upgrade arrives closely on the heels of significant price increases across Apple's Mac and iPad product lines, driven by industrywide memory component shortages. By offering lower relative monthly payments, the initiative aims to maintain consumer demand. Layoffs Fear: TikTok Staff Worry About Job Prospects Amid Tech Sector Job Cuts.
Unlike previous upgrade schemes, the new leasing framework does not bundle AppleCare coverage into the base subscription. Furthermore, specific entry-level models, including the iPhone 16, Apple Watch SE, base iPad, and MacBook Neo, as well as business and education purchases, will be excluded from the initial launch phase. Following the announcement, financial markets responded positively, with Klarna shares experiencing an upward movement.
(The above story first appeared on LatestLY on Jul 21, 2026 11:42 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
