Apple is preparing to launch a new leasing based service called Apple Upgrade in the United States to make buying Apple devices easier and more affordable. According to a Bloomberg News report, citing people familiar with the matter, the service is expected to launch on July 28. Through this program, customers will be able to purchase most iPhone, iPad, Mac, and Apple Watch models by paying monthly installments instead of the full price upfront. Customers will also have the flexibility to pay off the remaining balance before the agreement ends or switch to a newer model before the lease period expires. At the end of the lease, users can choose to keep the device by completing the required payment. Apple hopes this program will encourage more customers to upgrade to newer devices while reducing the financial burden of large one time payments.
The company has recently increased the prices of several products, including iPads and MacBooks, due to rising memory and storage chip costs driven by the rapid expansion of artificial intelligence technologies and the growing number of data centers worldwide. Apple believes the new Apple Upgrade program will make its products more accessible by offering lower monthly payments than many existing financing options. Bloomberg also reported that Swedish fintech company Klarna Group will serve as the financial partner for the program. Customers will be able to access the service through both Apple retail stores and the company’s online store, making it widely available across different purchasing channels.
After introducing Apple Upgrade, Apple plans to stop accepting new customers into its existing iPhone Upgrade Program and standard installment financing plans. The company aims to make Apple Upgrade its primary financing option for purchasing devices. However, the new service will not include AppleCare coverage, which is currently available with the iPhone Upgrade Program. In addition, Apple Watch SE, the entry level iPad, iPhone 16, and the MacBook Neo will not be eligible for the program. Purchases made by businesses and educational institutions will also be excluded. Apple and Klarna did not immediately respond to Reuters’ request for comment regarding the new program.
