Apple has launched a new leasing programme in the United States that allows customers to use iPhones, iPads, Macs and Apple Watches through monthly payments provided by Klarna, replacing some of the company’s previous device financing options.
Called Apple Upgrade, the programme became available on Tuesday through Apple’s online store, Apple Store app and US retail locations. Customers can choose 12- or 24-month leases for iPhones and Apple Watches, while Macs and iPads are available on terms of up to 36 months.
Monthly payments start at $17.99 for an iPhone, $11.99 for an Apple Watch, $24.99 for a Mac and $11.99 for an iPad, according to Apple.
At the end of a lease, customers can upgrade to another device under a new agreement, purchase the leased product with a final payment or return it. Apple said the programme is a consumer lease rather than a conventional purchase or loan, with Klarna providing the leasing service.
The company has discontinued its previous US iPhone Upgrade Program and iPhone Payments option for new customers. Existing participants can move to Apple Upgrade when eligible, use Apple Card Monthly Installments or choose other purchasing and carrier financing options.
The new leasing system offers lower monthly payments than Apple’s former upgrade programme in some cases, but customers do not automatically own the device when the lease ends. Under the previous iPhone Upgrade Program, customers could become owners after completing the required payments.
Apple said applications are subject to a soft credit inquiry that does not affect a customer’s credit score, and no security deposit is required. Its terms also warn that ending a lease early can result in substantial fees. A lease that is not upgraded, purchased or returned can move to a month-to-month arrangement for a limited period.
Apple Upgrade is currently available only to consumers in the United States. Apple has not announced a launch in the UK.
The move comes as Apple faces higher component costs and has recently raised prices on some Macs and iPads. Rising demand for memory and storage components from artificial intelligence companies has contributed to cost pressures across the technology industry.
Apple has increasingly used recurring payment options to make its products more accessible to customers facing higher upfront prices. The leasing programme also gives consumers a way to replace devices more frequently without paying the full purchase price at the beginning.
The launch comes ahead of a major leadership change at Apple, with John Ternus scheduled to succeed Tim Cook as chief executive on September 1. Apple is also expected to unveil new products later this year, including a potential foldable iPhone.
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