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Klarna Group (KLAR) stock jumped 5.0% in late morning trading on Tuesday after a media report that Apple (AAPL) is partnering with the fintech in a new program for leasing certain Apple products.
The program, set to launch on July 28, will include most iPhone, Mac, iPad, and Apple Watch models, Bloomberg News reported, citing people with knowledge of the matters.
Dubbed Apple Upgrade, the new service will work like a subscription. Users can pay off the device early during the term, upgrade early to a new model, or keep it at the end of the lease period. In some cases, those transactions will require a fee. But like a car lease, the item can also be returned at the end of the lease.
Apple (AAPL) stock gained 0.5% in late morning trading.
The Apple Upgrade lease won't include AppleCare, a service that is included under the current iPhone Upgrade program. Devices including the Apple Watch SE, entry-level iPad, iPhone 16, and MacBook Neo won't be eligible for the lease program. Moreover, business and education purchases are excluded.
The tech giant had been considering its own in-house iPhone and hardware subscription program before canceling the plan in 2024, Bloomberg said. The partnership with Klarna (KLAR) allows Apple (AAPL) to offer the program to consumers without taking on the credit risk.
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