Apple announced on Tuesday (July 28) that it has partnered with payment company Klarna to launch the “Apple Upgrade” device leasing program in the United States, offering consumers leasing options for iPhone, Mac, iPad, and Apple Watch. For example, Apple users will soon be able to lease an iPhone starting at $17.99 per month, with a maximum lease term of two years.
According to the statement released by Apple, “Apple Upgrade” offers 12-month and 24-month leasing options for iPhone and Apple Watch, and 24-month and 36-month leasing options for Mac and iPad. The starting monthly prices for leasing are as follows: iPhone starting at $17.99 per month, Apple Watch starting at $11.99 per month, Mac starting at $24.99 per month, and iPad starting at $11.99 per month. When users first register for “Apple Upgrade,” they can trade in their current devices through Apple Trade In to further reduce the monthly rental cost. Customers who pay the lease fee with an Apple Card can also receive a 3% cashback.
After the lease term ends, users can upgrade their devices to the latest generation products to continue leasing, make a one-time payment to purchase the device, or simply return the device and exit the leasing program. In the Klarna App, users can access all leasing information at any time, including billing arrangements and outstanding payment amounts. Users can also subscribe to AppleCare to protect their products.
Apple stated that “Apple Upgrade” makes it easier for consumers to access their favorite Apple products.
“At Apple, we put customers at the heart of everything we do,” said Karen Rasmussen, Vice President of Apple Online Store. “We are delighted that ‘Apple Upgrade’ can provide a more flexible way for online and retail customers to pay for their favorite products.”
Just a month before launching the lease program, Apple cited global memory shortages as the reason for raising the starting prices of iPad and Mac by at least $100, with some models seeing price hikes of over $1,000. Analysts expect prices for iPhones to also increase this year, and stated that the leasing model allows Apple to shift its focus from higher upfront prices to lower monthly payments.
With the introduction of “Apple Upgrade,” Apple will discontinue its existing “iPhone Upgrade Program” and “iPhone Payments” in the United States. Users who have already joined the “iPhone Upgrade Program” and are eligible can lease new devices through “Apple Upgrade,” make monthly instalments using Apple Card Monthly Installments, or opt for direct payment in one go, or choose installment payment plans offered by telecommunications companies.