Apple Launches Klarna-Backed Device Leasing Program: Apple Upgrade
Apple is launching Apple Upgrade on July 28, a Klarna-backed leasing program for iPhones, Macs, iPads, and Apple Watches, replacing its existing iPhone financing options.
Details of the Program:
- Customers can choose between 24-month leases for phones and watches and 36-month terms for Macs and iPads.
- There is no AppleCare included in the program.
- Users will need to pass a soft credit check to qualify.
- Customers have options to pay off the device early, upgrade before the term ends, or return the device at the end of the lease with potential additional fees.
Exclusions:
- Apple Watch SE
- Entry-level iPad
- iPhone 16
- MacBook Neo
- Business and education purchases
Benefits for Apple:
- Potentially softened sticker shock for customers facing rising hardware prices due to global component shortages.
- Shift from upfront costs to monthly payments.
Benefits for Klarna:
- Major distribution win for the Swedish buy-now-pay-later company, boosting its stock after a post-IPO decline.
Background:
Apple had been developing an in-house hardware subscription service since 2022 but abandoned it in late 2024 due to software problems and regulatory concerns.