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Buying premium tech upfront is getting tougher, but Apple is preparing a major pivot in how customers pay for hardware. According to a report from Bloomberg’s Mark Gurman, the company plans to launch a new device leasing initiative called “Apple Upgrade” on July 28 across online and retail stores in the US.
Rather than running its own internal lending service, Apple is teaming up with buy-now-pay-later specialist Klarna Group to back the service. The move arrives as surging component costs—driven heavily by global memory chip shortages—force tech companies to raise retail prices across their flagship product lines.
By shifting toward lower monthly payments, Apple hopes to keep its latest gadgets accessible to budget-conscious shoppers without forcing them to cover full retail prices upfront.
How the new lease model functions
Apple Upgrade operates much like a traditional car lease. Customers undergo a soft credit check at checkout and sign up for multi-year terms. iPhones and Apple Watches will carry 24-month lease terms, while iPads and Macs will run on 36-month schedules. Throughout the lease, users make predictable monthly payments.
After the contract expires, subscribers can either return the device, pay a fee to upgrade early to a newer model, or pay off the remaining balance to keep the hardware forever.
However, this new program has key structural differences from Apple’s existing payment options. Unlike the legacy iPhone Upgrade Program, Apple Upgrade does not include AppleCare+ coverage. Plus, Apple plans to stop accepting new enrollments for its older financing options to clear the way for this unified Klarna partnership.
Exclusions and limitations
The leasing system covers most mainstream Apple devices. However, the company is drawing clear lines around budget hardware and specialized buyers.
Entry-level devices—including the base iPad, Apple Watch SE, iPhone 16, and the recently announced MacBook Neo—are completely excluded from the Apple Upgrade program. Business accounts and educational institution purchases are also ineligible.
The post Apple Prepares Subscription-Style Upgrade Program to Fight Skyrocketing Prices appeared first on Android Headlines.
