Apple is reportedly set to introduce a new hardware leasing program that will give customers more flexibility in how they purchase Apple devices, allowing them to upgrade, buy out, or return products when their payment term ends.
According to Bloomberg's Mark Gurman, the service, called Apple Upgrade, is expected to launch in the US on July 28. It will be available through Apple’s website and retail stores, with Klarna handling the financing.
The launch follows recent price increases across several Mac and iPad models due to an industrywide memory shortage, while new iPhone price hikes are also expected when Apple unveils its next lineup in September.
New leasing model replaces current financing
Apple Upgrade will work similarly to a vehicle lease or subscription. Customers will make monthly payments and have the option to upgrade to a newer device before the lease ends, pay off the remaining balance to keep it, or return it when the term expires. Some options may involve additional fees.
The program is expected to offer 24-month leases for iPhones and Apple Watches, and 36-month leases for Macs and iPads. Approval will require a soft credit check.
Apple reportedly plans to position the service as a lower monthly payment alternative to its current financing plans. As part of the transition, the company is expected to stop accepting new customers into the existing iPhone Upgrade Program and standard financing options.
Unlike the current iPhone Upgrade Program, Apple Upgrade will not include AppleCare.
The service also won't cover every device. Reports say the Apple Watch SE, entry-level iPad, iPhone 16, and MacBook Neo will be excluded, along with purchases made through business or education programs.
Apple previously considered launching its own subscription service for hardware but abandoned the idea in 2024. Partnering with Klarna instead allows the company to offer leasing without managing the financial risk itself.