Apple has officially debuted a new device leasing program in collaboration with the “buy now, pay later” provider Klarna, as announced on Tuesday. This initiative allows eligible U.S. customers to acquire iPhones, Apple Watches, Macs, and iPads through manageable monthly installments, available via the Apple Store online, the Apple Store app, and physical retail locations across the United States.
Flexible Leasing Plans and Pricing
The Apple Upgrade program offers varied monthly entry points: starting at $17.99 for iPhone, $11.99 for Apple Watch, $24.99 for Mac, and $11.99 for iPad. Depending on the device, customers can select between one- and two-year leasing terms for iPhones and Watches, or two- and three-year terms for Mac and iPad products.
Upon reaching the end of a lease, users have three distinct paths: they can upgrade to the newest model, purchase their current device with a final one-time payment, or simply return the hardware to exit the program.
Addressing Rising Hardware Costs
This rollout arrives as Apple navigates significant supply chain hurdles caused by “RAMageddon”—the widespread memory chip shortage currently inflating hardware production costs. With recent price increases hitting the Mac and iPad lineups, this new leasing structure serves as a strategic maneuver to maintain consumer accessibility despite the upward pressure on pricing.
Streamlined Management and Program Shifts
Participants can oversee their lease agreements, monitor payment schedules, and track remaining balances directly through the Klarna app. With this transition, Apple is phasing out its legacy in-house financing options in the U.S., specifically replacing the previous iPhone Upgrade Program and iPhone Payments services.
The official launch confirms earlier reporting from Bloomberg’s Mark Gurman, who noted last week that the tech giant was preparing to pivot to this new lease-to-own model.
Maximizing Savings
To further reduce monthly costs, Apple allows customers to integrate the Apple Trade In program, applying the value of their existing devices to lower lease payments. Additionally, users who utilize the Apple Card for their monthly installments are eligible to earn 3% Daily Cash back.
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