Overview
- Apple is reported to launch a leasing program called Apple Upgrade on July 28 that will replace new enrollments in its iPhone Upgrade Program and standard financing.
- The program is described as lease-like with 24-month terms for iPhone and Apple Watch and 36-month terms for Mac and iPad, and it will use soft credit checks for enrollment.
- Apple Upgrade is said to exclude some entry-level models such as the iPhone 16, the entry-level iPad, the Apple Watch SE and the MacBook Neo, and business and education purchases will not be eligible.
- Apple announced broad hardware price increases on June 25 and cited rapid component-cost inflation as the reason for higher sticker prices, which reporting says motivated the move to lower monthly payments.
- Reports say Klarna will finance the program so Apple shifts credit exposure off its balance sheet, but the plan would not automatically include AppleCare and raises questions about fees, ownership rules and consumer protections that investors and regulators may scrutinize at Apple’s July 30 earnings call.