Sources: Apple plans to launch Apple Upgrade, a leasing program for most iPhone, Mac, iPad, and Apple Watch models, with partner Klarna in the US next week
Apple Inc. is preparing to introduce Apple Upgrade, a leasing program that will mark one of the biggest-ever changes to how the company sells devices.
BloombergMark Gurman
Context & Ripple Effects
Apple has previously extended an iPhone-focused online Upgrade Program, while 2022 coverage described a broader hardware-subscription ambition spanning iPhone and other devices. This reported rollout would turn that longer-running idea into a product covering several of Apple’s major hardware lines.
If launched as reported, US buyers of most iPhone, Mac, iPad and Apple Watch models would gain a leasing option, changing the immediate purchase decision from full ownership or traditional financing to recurring payments.
Apple would add a cross-device commercial program, while Klarna would become the disclosed partner handling a key part of the US leasing offer.
Second-order effects
A broad Apple leasing offer could pressure rival device makers and retailers to sharpen their own upgrade, trade-in and financing propositions, particularly where hardware refresh cycles are central to demand.
If this model scales, consumer-device competition may increasingly center on monthly cost, upgrade cadence and financing integration rather than only upfront hardware price.
The move is another test of the compute-finance model: manufacturers can seek steadier customer relationships, but the economics will depend on credit, residual-device values and customer acceptance of leasing over ownership.
The trend: Consumer hardware makers are increasingly using financing and subscription-like programs to convert episodic device purchases into recurring customer relationships.
Here's another read of this: A lease only has value to a company if the used product had residual value to be resold/refurbished later I view this as Apple getting more serious about controlling the secondary iPhone market and ensuring quality in it
Leasing programs will be 24 months for iPhone and Watch; 36 months for Mac and iPad. iPhone Upgrade Program and other financing offerings are going away. Soft credit check required. Launches July 28.
BREAKING: Apple will launch Apple Upgrade next week, an iPhone, iPad, Mac and Apple Watch leasing/subscription program. It's partnering with Klarna to launch in the U.S. at online and retail stores. https://www.bloomberg.com/...
I know a bunch of people are going to have strong opinions on this, but this is incredibly compelling depending on the terms If I upgrade every year, why not just lease it and not have to worry about selling/trading in with the cash/refund stuff I like this idea tbh!
sliding off my VR headset after clocking out of a 10 hour shift as an algorithmic grief calibrator. i pull out my leased iphone. face ID unlocks it. my cattle score updates: 412 (below leasing minimum). a notification reminds me i'm 3 payments behind on my 56 month Klarna plan.
So, Apple raises the prices of its devices and then offers “leasing programs” for said devices. The “you'll own nothing and like it” era of technology is really getting out of hand. When will this nonsense end?