Overview
- Apple launched the Apple Upgrade leasing program on July 28, offering Klarna-backed monthly plans for iPhones, Apple Watches, iPads and Macs with options to upgrade, return, or buy at term end.
- Customers can choose 12- or 24-month leases for phones and watches and 24- or 36-month leases for tablets and laptops, with advertised starters such as iPhones from $17.99 per month and Apple Watches from $11.99 per month.
- Apple partnered with Klarna after ending its Apple Pay Later test, outsourcing credit underwriting to a fintech firm rather than running consumer lending itself.
- Analysts say the program is designed to boost customer retention, create steadier revenue and supply more trade-ins for refurbishment, while the math usually favors people who upgrade frequently over long-term owners.
- The launch reflects a wider industry shift as replacement cycles lengthen and competitors and startups run similar buyback and subscription models, raising questions about total costs, fees for early changes and consumer protections.