Apple has introduced a new leasing program in partnership with Klarna, allowing customers to pay monthly fees for its latest devices with the option to return, upgrade, or purchase them at the end of the lease term. The initiative, named Apple Upgrade, expands beyond iPhones to include Apple Watch, Mac, and iPad models.
The program offers 12- and 24-month leasing plans for iPhones and Apple Watches, while Macs and iPads are available under 24- and 36-month terms. Leasing prices start at $17.99 per month for iPhones, $11.99 for Apple Watches, $24.99 for Macs, and $11.99 for iPads. At the conclusion of a lease, customers can choose to return the device, upgrade to a newer model, or purchase the leased product with a one-time payment.
This new program replaces Apple’s previous iPhone Upgrade initiative, which was limited to phones. It introduces a different pricing structure that could lower monthly payments. For example, under the former program, an iPhone 17 Pro required a monthly payment of $57 over two years, with ownership transferring to the customer afterward. Under the Apple Upgrade plan, the same device is available for $32 per month over two years, with the option to buy it at the lease's end. Additionally, AppleCare insurance, previously mandatory under the older program, is now optional.
The launch of this leasing option follows a recent round of price increases by Apple, which raised the cost of some Mac and iPad models by $200 or more last month. The company attributed the higher prices to rising expenses for memory and chip storage components. Apple also noted that increased demand for these components, driven partly by rapid growth in artificial intelligence applications, has contributed to the escalation in costs.
Shares of both Apple and Klarna saw gains following the announcement on Tuesday. The new program comes ahead of a leadership change at Apple, with John Ternus set to succeed Tim Cook as CEO on September 1. The transition coincides with expectations that Apple will unveil a foldable iPhone model, joining competitors already offering similar devices in the market.