Overview
- Bloomberg reported on Tuesday that Apple plans to roll out the Apple Upgrade leasing program in the U.S. on July 28, a move covered by multiple outlets but not yet confirmed by Apple or Klarna.
- The program will let customers make monthly payments like a subscription, with options to pay off early, upgrade before term end, keep the device, or return it when the lease expires.
- Leases will run 24 months for iPhones and Apple Watches and 36 months for iPads and Macs, and the service will be offered in Apple retail stores and online after a soft credit check.
- Apple will stop new enrollments in its existing iPhone Upgrade Program and standard financing, and the new leases reportedly will not include AppleCare, leaving customers to buy coverage separately.
- The partnership with Klarna lets Apple avoid underwriting risk, triggered a jump in Klarna’s stock, and follows recent device price increases and Apple’s earlier, shelved effort to build its own subscription service.