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Apple is planning to launch a new leasing and financing program for many of its flagship products, transforming its standard ownership model across the brand, according to reporting by Bloomberg. The new program is called Apple Upgrade, and the tech giant is partnering with financial technology company Klarna, best known for buy now, pay later shopping and flexible checkout payment options.
Like many of Klarna's other programs, Apple Upgrade will allow consumers to split purchases into installments and pay over time. Klarna also offers an app for managing payments and shopping-related features, so it's likely (though not confirmed) that Apple Upgrade will include a similar integration.
Apple Upgrade will apply to new iPhones, iPads, Macs, and Apple Watches. While it's a dramatic shift for Apple, it's not entirely unheard of, as it's slated to replace the existing iPhone Upgrade Program, a current monthly financing program exclusively for iPhones. If you do decide to grab a new Apple product through the program, there are a number of cool new iOS 27 features you can experiment with.
Read more: 6 Reasons To Buy Your iPhone From Costco (Instead Of The Apple Store)
How Apple Upgrade will work
The length of the lease term will differ depending on the hardware. For Apple Watches and iPhones, the term will be 24 months, but will extend to 36 months for Macs and iPads.
It differs from the existing iPhone Upgrade Program, which only offers financing terms across 24 months but allows users to upgrade their phones after 12 payments, and also includes AppleCare+ with Theft and Loss (not included in the new program). Notably, the iPhone Upgrade Program is operated directly by Apple, while Apple Upgrade will be largely Klarna's responsibility, meaning Klarna will also be shouldering a significant amount of the financial risk.
Some purchases are excluded, including all business and education purchases, which often include special pricing, purchasing controls, and volume-buying options. The iPhone 16, MacBook Neo, Apple Watch SE, and entry-level iPad are also excluded from the new program (though all the other products the company is expected to launch in 2027 are likely to be included). The timing coincides with a number of price hikes across Apple devices in reaction to the ongoing storage and memory chip shortage, giving the appearance that Apple is trying to take some of the sting out of increased prices by stretching the burden across multiple payments (alongside news that the company will now pay you more for your old iPhones).
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