Apple is set to roll out a major new device financing program called “Apple Upgrade,” partnering with Swedish fintech Klarna Group Plc, in a significant new option for Apple hardware customers.
The program, scheduled to launch on July 28th, will allow U.S. customers to lease most models of iPhones, Macs, iPads, and Apple Watches through Apple Stores and online. It requires only a simple credit check and is designed to address softening demand and higher device prices by offering more affordable monthly payments.
Bloomberg News reports that according to people familiar with the matter, Apple Upgrade marks one of the biggest changes to the company’s sales model in years. Lease terms will be 24 months for iPhones and Apple Watches, and 36 months for Macs and iPads. Customers will have flexibility at the end of the term: upgrade to a newer device early, pay off the balance to own it outright, keep making payments, or return the device.
The initiative builds on — and in many ways replaces — Apple’s existing iPhone Upgrade Program. By working with Klarna as the financial backer, Apple aims to spur sales without directly shouldering the full credit risk, while making premium devices more attainable as average selling prices continue to climb.
Notable details and limitations include:
• AppleCare+ is not included in the base lease (customers can add it separately).
• Certain newer models, such as the iPhone 16 series, may initially be excluded.
• Availability is currently limited to the U.S. market.
Consumer reactions have been mixed. Proponents see it as a convenient way to stay on the cutting edge of Apple’s ecosystem with lower upfront costs, while critics worry it could encourage perpetual leasing over ownership and increase long-term spending for users who frequently upgrade.
This move comes as Apple faces pressure to innovate its services and hardware sales amid a competitive landscape and macroeconomic challenges. The partnership with Klarna, known for its “buy now, pay later” services, could also expand into broader financing options in the future.
MacDailyNews Take: The program comes on the heels of recent price increases across iPad and Mac lines driven by component cost inflation, aiming to keep monthly friction low for consumers even as average selling prices rise. Shifting the financing backend to Klarna allows Apple to expand leasing across nearly its entire hardware portfolio without carrying credit risk on its own balance sheet.
The news has boosted AAPL shares into the green.
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I made a purchase over on Etsy and the seller was giving a 10 percent discount if paying by Klarna.
So, I signed up.
The process was really a poor experience. It didn’t work. I didn’t get the discount.
I can only hope Klarna got its act together for this venture with Apple.
I for one am sceptical over using it. I’ll stick to PayPal Credit. It’s a shame Apple didn’t work something up with them. Never had a problem and when I had a question, I could call and reach a PayPal rep over the phone.