Apple is reportedly launching a new “Apple Upgrade” leasing program in the US with Klarna, which will replace the current iPhone Upgrade Program for new sign-ups. The plan allows customers to lease most iPhones, iPads, Macs, and Apple Watches for a set term, with options to return, upgrade, or purchase the device afterward.
Apple’s new “Apple Upgrade” program is scheduled to debut in the US on Tuesday, July 28, according to Bloomberg’s Mark Gurman. Customers who are currently registered in the iPhone Upgrade Program will apparently be able to stay in it for the time being, but Apple will cease accepting new sign-ups on the same day. Gurman claims that Apple is running the scheme in conjunction with the buy-now-pay-later business Klarna.
How Does This Leasing Work?
Customers may lease the majority of iPhone, iPad, Mac, and Apple Watch devices with Apple Upgrade. Macs and iPads will have a 36-month term, whereas iPhones and Apple Watches will have a 24-month term. Customers can choose to return the equipment, upgrade to a newer model, or pay a charge to keep the device at the end of the term.
According to the source, a few less expensive devices—such as the Apple Watch SE, the entry-level iPad, the iPhone 16, and the MacBook Neo—will not be included by the program.
Unlike Apple’s traditional instalment plans, the programme is said to follow a subscription-style leasing model rather than a retail loan. Klarna will conduct a soft credit check, and additional fees may apply in some cases. Apple reportedly plans to market the programme around lower monthly payments, making premium Apple devices more accessible without requiring customers to pay the full price upfront.
According to reports, AppleCare+ will not be included in the monthly cost of Apple Upgrade plans, in contrast to the current iPhone Upgrade Program. According to the reports, Apple plans to promote the scheme as having cheaper monthly payments than its existing financing alternatives. This implies that Apple Upgrade is based on leasing rather than conventional finance, and it is anticipated to completely replace the iPhone Upgrade Program for future purchases.
The new programme is expected to let customers finance iPhones, iPads, Macs and Apple Watches under a single umbrella, while also offering early upgrade options. However, there is no information yet on whether Apple plans to introduce the programme in India.