In what marks one of its most significant retail model overhauls in years, Apple is preparing to roll out a broad new device leasing initiative called “Apple Upgrade” on July 28th.
Partnering with Swedish financial tech company Klarna Group Plc, the tech giant will allow U.S. customers to lease most models of iPhones, Macs, iPads, and Apple Watches with low monthly installments, expanding hardware subscriptions far beyond its traditional phone-only offerings.
Key Details of the ‘Apple Upgrade’ Program
• Partner Bank: Klarna Group Plc (soft credit check required)
• Supported Hardware: Select iPhones, Macs, iPads, and Apple Watches
• Lease Durations
– 24 months: iPhones & Apple Watches
– 36 months: Macs & iPads
• End-of-Term Options: Upgrade early, pay off balance to own, continue monthly payments, or return device
• Notable Exclusions: Apple Watch SE, entry-level iPad, iPhone 16, MacBook Neo
• Protection Plan: AppleCare+ not bundled (available as an optional add-on)
A Broader Reach Across Apple’s Hardware Ecosystem
For over a decade, Apple’s hardware installment options were anchored by its legacy iPhone Upgrade Program, launched in September 2015 in partnership with Citizens Bank. However, that program was restricted strictly to iPhones and bundled AppleCare+ into every plan.
Under the new arrangement with Klarna, Apple aims to address softening hardware demand and recent supply-chain cost spikes by softening the upfront price tag across almost its entire lineup. Customers will no longer be limited to mobile devices; for the first time, high-end MacBooks and iPads can be structured as multi-year leases directly through Apple Stores and the Apple Online Store.
Trade-Offs and Exclusions
While the new leasing options make expensive hardware more accessible, the service is said to come with a few notable catches:
• No Bundled AppleCare+: Unlike the legacy iPhone Upgrade Program, base monthly payments on Apple Upgrade will only cover the hardware cost. Users wanting theft, loss, or damage coverage must purchase AppleCare+ separately.
• Entry-Level Exclusion: According to reports, Apple is intentionally excluding lower-priced budget devices—such as the Apple Watch SE, base-model iPad, older-generation iPhone 16, and MacBook Neo—to encourage buyers toward mid- and high-tier hardware.
• Sunsetting the Old Guard: With Apple Upgrade launching, Apple plans to stop accepting new enrollments for the original iPhone Upgrade Program, though existing members will be permitted to complete their current terms.
MacDailyNews Take: The new program arrives at a critical moment as average selling prices for consumer tech continue to rise. By framing flagship hardware purchases as digestible monthly subscriptions, Apple hopes to keep ecosystem upgrades steady despite broader macroeconomic pressures. Shifting the financing backend to a third-party partner like Klarna allows Apple to expand leasing across nearly its entire hardware portfolio without taking the credit risk directly onto its own balance sheet.
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New Feudalism
Pay Rent. Own Nothing.
LA T-Shirt: “Want to surf?”
Silicon Valley T-Shirt: “Be a Serf”
Subscriptions suck. I will own my things.
As long as it’s a “pay in installments” option, I’m okay with it, because that allows you to eventually pay it off and own it outright. If it’s a perpetual subscription model that you never pay off, like what Adobe introduced and a bunch of software companies jumped on the bandwagon with, that I’m not a fan of. Not everything needs to be a damn subscription.
i’ve got to dump my shares. i knew trump touching apple would screw it up
everything trump touches fails.
We’re all going to fail as long as Sleepy Don has an audience. Apple, us, the world.
trump is a blight on the country and the world.
scamming gullible supporters, undermining democracy and everything great about America, and for one reason and one reason only: to get as rich as possible as fast possible.
that aside, apple will be fine.
“Undermining democracy and everything great about America”.
As in letting 20 million illegals wander in…or expanding the push for Socialism/Communism across the country?
“Undermining democracy,” like proposing ID requirement to vote…that some call “voter suppression?”
Same logic; TSA/Airlines requiring ID to board a flight, is vacation suppression.
By the way, BOB, john, and the rest of you useful idiots:
We all know the last Democrat president wasn’t duly elected, but was instead a brain-dead puppet of leftist Obama-era string-pullers and auto-pen scribblers.
Even MacDailyNews has a hidden tell regarding the so-called Biden presidency.
Search for any U.S. president on MacDailyNews from “President Carter” onward and only one never appears anywhere within MDN’s many pages. Ever:
https://macdailynews.com/?s=%22President+Carter%22
https://macdailynews.com/?s=%22President+Reagan%22
https://macdailynews.com/?s=%22President+Bush%22
https://macdailynews.com/?s=%22President+Obama%22
https://macdailynews.com/?s=%22President+Trump%22
https://macdailynews.com/?s=%22President+Biden%22 yields “Search Results for: ‘President Biden’ – Sorry, but nothing matched your search terms.” “Biden” returns results, but not “President Biden,” unlike every other U.S. president.
MacDailyNews has never typed the words “President Biden” and hit “publish.” I bet they never will.
Sell your shares today and you are likely a winner….
AAPL was $202.xx a yr ago (Aug 1).
Today; $325/share. (60+% increase)
Forecast: +20%/yr. ($380-something)
Damm Don.
Poor BOB. It must be painful to have a 6’3″ 224lb. multi-billionaire living rent-free inside his pea-sized head.
Interestingly just in time for the $2500+ Ultra; it’s basically a carrier plan at it’s core allowing low cost point of entry into the ecosystem, and then Apple has them. This will drive switchers.
Maybe I can finally afford that Mac Studio! Let’s see, $15,000/36 is ~$415 a month!
If Apple goes exclusively to a “rent your Mac” scenario, I’ll drop Macs (and maybe Apple) all together.
I HATE (more than I can ever explain) the subscription model for tech. I’m sure there are many users like me, but we may be a minority. Apple may not care that they lose us as a subscription model is financially more stable for Apple. It’s somewhat similar to them “nerfing” the Mac Pro then canceling it all together. Apple does not care anymore about the people that hung in there in the 90s and kept them alive.
As some of you know I’ve bought and used Apple hardware/software since the late 70s and Macs since ’84. I’ve always owned the hardware and had a perpetual license to the software. If I can’t continue that with Apple, then I’m done with Apple.
I have never forgiven Adobe for that crossover! Constant updates, fixes and changes to how things work is an ongoing issue.