Apple’s new Upgrade leasing program lets you pay a low monthly fee for an iPhone, Mac, iPad, or Watch instead of the full price upfront. Max Tech creator Vadim Yuryev ran the numbers on a $2,999 MacBook Pro and claims that leasing, buying out the residual, and reselling can leave you hundreds ahead of purchasing outright — with zero interest. Here’s how the math works (and the caveats that still apply).
Chance Townsend for Mashable:
In a post on X in response to Bloomberg’s Apple expert Mark Gurman, Yuryev walked through the math, using a $2,999 MacBook Pro as an example.
Explained this in today’s YouTube video. If you lease a $2,999 Mac, you pay $58 a month for 36 months. At the end, you owe $911 to pay it off or return it.
However, Apple gives you 6 more months to decide. Meanwhile, you continue paying monthly payments of $53.
You now have 6… https://t.co/ZFm37Bnc5t pic.twitter.com/hH45E2rWvg
— Vadim Yuryev (@VadimYuryev) August 2, 2026
He said a 36-month lease would run $58 per month, leaving a $911 balance due at the end — though Apple gives lessees six additional months to decide, during which payments drop to $53 per month. Yuryev argued that paying off that final balance makes sense because the device could then be resold for “$1,500+ on eBay or Facebook marketplace,” rather than the customer simply losing the amount paid in over the life of the lease.
Yuryev emphasized that “you never pay more” than the device’s MSRP, since Apple Upgrade carries no interest or lease fees. He added that the primary risk is failing to keep up with payments or falling short on the final balance, and noted that once a device is paid off, users can start a new lease while keeping the original one.
MacDailyNews Take: While, as AAPL shareholders, we wish Apple every success with their Apple Upgrade program via Klarna, in an age of zero-interest financing, “buy now, pay later,” and glossy leasing schemes dressed up as smart upgrades, a simple truth keeps getting buried (caution, soap box sermon ahead):
The surest way to build lasting wealth is to avoid debt entirely, buy only what you can afford outright, and live within your means.
Leasing expensive hardware, stretching payments over years, may feel painless month to month. It is still debt. You are paying for the privilege of using something you do not fully own, often while assuming residual balances, credit checks, and the risk that the used-market value collapses when everyone else is dumping the same leased devices. The math can be made to look attractive on a YouTube whiteboard. Reality is less forgiving.
Paying cash for what you can actually afford forces discipline. It prioritizes value over status. It eliminates interest, fees, and the quiet stress of monthly obligations. When the device eventually ages, you own it free and clear — you can sell it, keep it, or pass it on without a lender’s permission. That freedom compounds.
Financial success is not about maximizing monthly cash flow or chasing the newest model every two years. It’s not about keeping up with The Joneses. It is about keeping more of what you earn, avoiding the traps that turn consumers into lifelong renters, and building genuine ownership over time.
Debt is easy. Discipline is harder. The latter is the only reliable route to real financial independence.
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[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
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Apple has launched a major new program that lets customers lease its hardware on monthly payments instead of buying outright, positioning the company more firmly as a subscription-driven business.
On July 28th, Apple introduced Apple Upgrade in the United States, a Klarna-backed leasing service available online and in Apple Stores. It replaces the older iPhone Upgrade Program and extends subscription-style access across most iPhones, iPads, Apple Watches, and Macs.
How it works
Customers choose lease terms of 12 or 24 months for phones and watches, or 24 or 36 months for tablets and computers. Starting prices are roughly:
• iPhone: from about $17.99–$18 per month
• Apple Watch and iPad: from about $11.99–$12 per month
• Mac: from about $24.99–$25 per month
Exact amounts vary by model, configuration, and term length. Higher-end devices cost more (for example, certain MacBook Pros start in the high $30s to $50s range). A soft credit check is required. Trade-ins can lower monthly payments, and Apple Card users may earn Daily Cash on payments.
At the end of the term, users can upgrade to a newer device, pay a one-time fee to keep the current one, or return it. Early upgrades, early payoffs, or terminations can incur extra fees. AppleCare is not included and must be purchased separately. Some lower-cost models (such as the Apple Watch SE, entry-level iPad, certain older iPhones, and the MacBook Neo) and business/education purchases are excluded.
Why it matters
The program arrives as Apple’s services business continues to grow strongly and as hardware prices have risen amid industry-wide memory and storage shortages driven by AI demand, Bloomberg News‘ Mark Gurman notes in his most-recent newsletter. By partnering with Klarna, Apple offers lower monthly outlays and easier access to the latest devices without taking on the full financing risk itself.
This move answers a long-standing question about Apple’s next growth phase. Combined with its existing software and media subscriptions (now totaling well over a billion paid subscriptions across Apple services and App Store apps), Apple Upgrade pushes the company closer to a full hardware-plus-services subscription model. Customers stay in the ecosystem longer, upgrade more frequently, and generate recurring revenue rather than one-time hardware sales.
In short, Apple is no longer just selling products, it’s increasingly selling ongoing access to them. The new leasing program is the clearest signal yet of that strategic shift.
MacDailyNews Take: Apple just made the smartest move in years. By turning hardware into a true subscription via Apple Upgrade + Klarna, Cupertino locks customers into the ecosystem, smooths out lumpy iPhone cycles, and rakes in predictable revenue while competitors still chase one-time sales. Yet, if you still want to buy outright, you can! Welcome to the optional Apple-as-a-Service era.
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Apple today announced Apple Upgrade, a new product leasing program provided by Klarna for iPhone, Apple Watch, Mac, and iPad available on the Apple Store online, in the Apple Store app, and at Apple Retail Store locations in the United States. Apple Upgrade makes it even easier for customers to get the Apple products they love with a leasing plan that is right for them.
“At Apple, we put the customer at the center of everything we do,” said Karen Rasmussen, Apple’s vice president of the Apple Store online, in a statement, “and we’re thrilled that Apple Upgrade offers our customers, both online and in-store, a more flexible way to pay for the products they love.”
Apple Upgrade offers 12- and 24-month leasing options for iPhone and Apple Watch, and 24- and 36-month leasing options for Mac and iPad. Leasing prices start as low as $17.99 per month for iPhone, $11.99 for Apple Watch, $24.99 for Mac, and $11.99 for iPad. When customers first enroll in Apple Upgrade, they can further lower their monthly lease payments by trading in their currently owned device through Apple Trade In. Customers can also earn 3 percent Daily Cash back when making their lease payments with Apple Card.
Upgrading Has Never Been Easier
With Apple Upgrade, customers can expect the same seamless and personalized shopping experience online and in stores. Apple and Klarna have created a simple enrollment process that provides customers with detailed information regarding their leasing options before they enroll.
Upon choosing their preferred leasing option, customers can apply within minutes — online or in-store — and receive quick approval from Klarna. All applicants will be subject to a soft credit inquiry that will not impact their credit score. Once approved, they can complete their transaction as usual. In-store customers can enjoy their new device right away, while online customers can choose delivery or in-store pickup. Whether they shop in-store or online, all customers can take advantage of Apple’s Personal Setup service to help get their new product ready to use and ask any questions they might have. They can also join the many free and educational Today at Apple sessions to learn how to get started — or go further — with their devices.
At the end of the lease term, customers can upgrade their device to the latest generation, purchase it with a one-time payment, or simply return it and exit the program. In the Klarna app, they can stay on top of all of their lease information, including their billing schedule and remaining payments. Customers can add an AppleCare subscription to protect their products, making the return of their current device and upgrade to a new one even easier.
With the launch of Apple Upgrade, Apple will no longer offer the iPhone Upgrade Program and iPhone Payments in the United States. When eligible, customers currently enrolled in the iPhone Upgrade Program will have the option of leasing a new device with Apple Upgrade, financing with Apple Card Monthly Installments, purchasing the product outright, or choosing carrier financing.
Explore the Lineup and Upgrade Today
iPhone
iPhone 17e delivers incredible value with faster performance, an advanced camera system, enhanced durability, the magic of MagSafe, and double the starting storage at 256GB. iPhone 17 is packed with features users will enjoy every day, including a bigger and brighter display with ProMotion up to 120Hz, all-day battery life with faster charging, a fantastic 48MP Dual Fusion camera system, and the Center Stage front camera. iPhone Air features a thin and light design that is more durable than any previous model, with pro performance, advanced camera systems on the front and back, and all-day battery life. With a unibody design optimized for performance and powered by A19 Pro, iPhone 17 Pro and iPhone 17 Pro Max are the most powerful Pro models ever made, delivering the best performance, camera systems, and battery life in an iPhone. iPhone leases start at $17.99.
Apple Watch
Apple Watch Series 11 is the ultimate health and fitness companion, featuring the most comprehensive set of health features yet — including groundbreaking hypertension notifications that can alert users to signs of chronic high blood pressure, and sleep score, which helps users understand the quality of their sleep and how to make it more restorative. With up to 24 hours of battery life and a display that’s 2x more scratch-resistant, Apple Watch Series 11 is more convenient than ever to wear throughout the day and night. Apple Watch Ultra 3 is the most advanced Apple Watch — rugged and capable, built for sports and adventure while seamlessly serving as a powerful health companion. It features the largest display ever in an Apple Watch, powered by Apple’s most advanced display technology with LTPO3 and wide-angle OLEDs, along with up to 42 hours of battery life — or up to 72 hours in Low Power Mode. Apple Watch Ultra 3 also features built-in, two-way satellite communications, so users can text emergency services, message friends and family, and share their location even when off the grid. Apple Watch leases start at $11.99.
Mac
Available in 13- and 15-inch models, MacBook Air with M5 delivers incredible performance, up to 18 hours of battery life, and advanced AI capabilities in a thin, light, and durable aluminum design. The M5 family of chips — M5, M5 Pro, and M5 Max — deliver even more performance and capabilities to MacBook Pro, the world’s best pro laptop. All MacBook Pro models deliver game-changing performance and advanced AI capabilities, and include a Liquid Retina XDR display with a nano-texture option, an advanced 12MP Center Stage camera, and up to 24 hours of battery life. Powered by the M4 chip, iMac is the world’s best all-in-one and features a nano-texture display option, a 12MP Center Stage camera, and Thunderbolt 4 connectivity — all in its strikingly thin design. Mac Studio with M4 Max and M3 Ultra is the most powerful Mac ever made, delivering groundbreaking pro and AI performance, plus extensive connectivity with Thunderbolt 5 in its compact and quiet design that can live right on a desk. Mac leases start at $24.99.
iPad
iPad Air features blazing performance, 12GB of unified memory, and fast connectivity, empowering users to be productive and creative wherever they are. With the Ultra Retina XDR display and the power of M5, iPad Pro offers the most advanced iPad experience, packing powerful performance in a stunningly thin and light design. iPad mini delivers the full iPad experience in a device users can hold in the palm of their hand. Accessories such as Magic Keyboard extend the versatility of iPad Air and iPad Pro, while Apple Pencil Pro unlocks even more magical capabilities for illustrating, note-taking, annotating, and more on iPad Air, iPad Pro, and iPad mini. iPad leases start at $11.99.
More info about Apple Upgrade here.
MacDailyNews Take: Here’s the fine print:
Apple Card is subject to credit approval, available only for qualifying applicants in the United States, and issued by Goldman Sachs Bank USA, Salt Lake City Branch.
Subject to eligibility and credit approval.
Upgrades require entering into a new lease and returning your prior device, and are subject to eligibility and credit approval.
AppleCare delivers exceptional service and support, with flexible options for Apple users. Customers can choose AppleCare+ to cover their new product, or AppleCare One to protect multiple products in one simple plan. Both plans include coverage for accidents like drops and spills, theft and loss protection on eligible products, battery replacement service, and 24/7 support from Apple Experts. For more information, visit apple.com/applecare.
Apple Card Monthly Installments (ACMI) is a 0 percent APR payment option that is only available if users select it at checkout in the U.S. for eligible products purchased at Apple and is subject to credit approval and credit limit. See support.apple.com/en-us/102730 for more information about eligible products. Additional limits and restrictions apply. See the Apple Card Customer Agreement for more information about ACMI.
Apple Watch Series 11 with Ion-X glass has a ceramic coating that provides 2x more scratch resistance than Series 10 with Ion-X glass.
Subject to availability.
This offer is for a consumer lease, not a purchase or loan. Lease provided by Klarna Inc. for 12-, 24-, or 36-month term. 12- and 36-month terms not available for all device models. Your first monthly payment is due approximately 30 days after device is shipped or available for pickup. Lease approval is subject to eligibility and is based on creditworthiness. Monthly payments are based on the selected device and lease term. For example:
For an iPhone 17 Pro 256GB with a purchase price of $1,099 (excluding taxes and any trade-in credit), the typical monthly payment is $31.99 (excluding taxes and any trade-in credit) for a 24-month lease term and $45.99 (excluding taxes and any trade-in credit) for a 12-month lease term.
For an Apple Watch Series 11 (GPS) 42mm with a purchase price of $399 (excluding taxes and any trade-in credit), the typical monthly payment is $11.99 (excluding taxes and any trade-in credit) for a 24-month lease term and $21.99 (excluding taxes and any trade-in credit) for a 12-month lease term.
For an 11-inch iPad Pro 256GB with a purchase price of $1,199 (excluding taxes and any trade-in credit), the typical monthly payment is $24.99 (excluding taxes and any trade-in credit) for a 36-month lease term and $31.99 (excluding taxes and any trade-in credit) for a 24-month lease term.
For a 14-inch MacBook Pro 16GB with a purchase price of $1,999 (excluding taxes and any trade-in credit), the typical monthly payment is $38.99 (excluding taxes and any trade-in credit) for a 36-month lease term and $53.99 (excluding taxes and any trade-in credit) for a 24-month lease term.
No security deposit required. A trade-in device may reduce monthly payments. Advertised monthly payment amount may not include a trade-in device’s estimated value. Upgrades are not guaranteed and are subject to eligibility and approval.
For iPhone only: In order to lease an iPhone, you must select an eligible carrier (AT&T, T-Mobile, or Verizon), but you cannot use a prepaid carrier plan. A leased iPhone is always unlocked, so you can switch carriers at any time, subject to your carrier’s terms.
Terminating the Apple Upgrade lease: Closing your lease and returning your device terminates your lease. You may incur substantial fees if you terminate your lease before the end of your initial lease term. You may have the option to upgrade to a new device by entering into a new lease agreement and returning your prior device. If you upgrade, your new monthly payments may be greater than your prior monthly payments. If you do not upgrade, terminate your lease, or purchase your device by the end of the initial lease term, the lease will convert to a month-to-month lease for up to six months. Your monthly payments may increase during the month-to-month periods. If you take no action at the end of your extension period, you will be charged the purchase fee under your lease. You will not own your device at the end of your lease, unless you pay the purchase fee. Insurance is not included in your lease, and you may incur damage fees if the device is lost, stolen, or not returned in the condition required by the lease.
Apple Upgrade lease eligibility: Leases are only available to U.S. residents (excluding residents of U.S. territories). Leased devices are only available for shipping to U.S. addresses (excluding U.S. territories) or pick up at Apple Retail stores in the U.S. (excluding U.S. territories). To be eligible for a lease, you must be at least 18 years old (or the legal age in your state of residence), have a valid Social Security Number or individual taxpayer identification number (ITIN), have an accepted credit or debit card, have an Apple Account in good standing, have a Klarna Account, and be able to receive security verification codes via text message. Leases are not available on refurbished accessories or online at the following special stores: Apple Employee Purchase Plan; participating corporate Employee Purchase Programs; Apple at Work for small businesses or enterprises; Government, Education, or Veterans and Military Purchase Programs.
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The post ‘Apple Upgrade’ launches in the U.S.; new product leasing program for iPhone, Apple Watch, Mac, and iPad appeared first on MacDailyNews.
Apple is advancing several key product and service initiatives beyond its smart glasses efforts, according to details shared in Bloomberg News’ Mark Gurman’s Power On newsletter. These include refreshed Apple Watch models heading into late-stage testing, a comprehensive update across its entire Mac lineup to meet AI-driven demand, a new leasing program with Klarna, and a navigation partnership with Ford.
Three New Apple Watch Models in Late-Stage Testing
Apple is currently testing three new Apple Watch models expected this fall: the Series 12 in both Wi-Fi-only and cellular versions (internally codenamed N237 and N238) and the Ultra 4 (N240). No new Apple Watch SE is planned for 2026, following the prior year’s refresh of that model.
These updates will retain the existing design language rather than introducing a visual overhaul. Focus areas include performance improvements via new processors and enhancements to health and fitness tracking capabilities. A more significant redesign of the Apple Watch is in the works but is not expected for another year or two. Work also continues on a blood-sugar monitoring feature, a long-term project originally conceived during the Steve Jobs era, with availability targeted later this decade.
Full Mac Lineup Overhaul for AI Demand
Apple is preparing new versions of every Mac it currently sells, timed across this fall and into next year, to capitalize on demand for powerful machines suited to artificial intelligence workloads.
The initial wave this fall is expected to include a refreshed entry-level 14-inch MacBook Pro powered by the M6 chip and updated iMac models (the first significant desktop refresh in some time). Later in late 2026 or early 2027, higher-end 14-inch and 16-inch MacBook Pro models featuring OLED displays and touchscreen capabilities are planned (using M5 Pro and M5 Max chips in the first generation of the redesigned versions). Updated MacBook Air models (13- and 15-inch), a refreshed MacBook Neo with an A19 Pro chip and increased memory plus potential new colors, plus new Mac mini (M6 and M5 Pro) and Mac Studio (M5 Max and M5 Ultra) configurations are also in development. Timing for some desktop models may depend on memory chip supply availability amid broader industry constraints. Further redesigns and chip updates (including M7 variants) are mapped into 2027 and beyond.
Apple Upgrade Device Leasing Program with Klarna
Apple plans to launch “Apple Upgrade,” a leasing program in partnership with Klarna, on July 28th. It will cover most iPhone, Mac, iPad, and Apple Watch models and represents one of the largest shifts in how the company sells devices.
Lease terms are expected to run 24 months for iPhones and Apple Watches and 36 months for Macs and iPads. Customers can make monthly payments, pay off the device early, upgrade to a newer model before the term ends, keep the device, or return it at the end of the period (with some options potentially involving additional fees). The program requires a soft credit check, will be available online and in U.S. Apple Stores, and will not bundle AppleCare.
A soft credit check (also called a soft inquiry or soft pull) is a review of your credit report that does not affect your credit score. Lenders or companies use it to pre-qualify you, check eligibility, or review an existing account, without the temporary score dip that comes from a hard inquiry (which is used for actual loan/credit applications). Soft checks still appear on your own credit report but are not visible to other lenders.
Certain entry-level models (such as the Apple Watch SE, base iPad, iPhone 16, and MacBook Neo) and business/education purchases are excluded. It is intended to replace or wind down new enrollments in existing iPhone Upgrade and standard financing options, with marketing emphasizing lower monthly payments.
Apple Maps Integration with Ford’s Universal Electric Vehicle Platform
Apple and Ford have announced that Apple Maps will be integrated directly into Ford’s upcoming Universal Electric Vehicle (UEV) Platform, starting in 2027, via Apple’s new MapKit for Automotive SDK. This will deliver native navigation on vehicle displays—including turn-by-turn directions with natural language, real-time traffic and incident information, detailed place cards, intelligent EV routing with battery preconditioning—without requiring a paired iPhone (though CarPlay remains available as an option).
Road-level Maps data will also support Ford’s Latitude AI team in developing enhanced hands-free driving experiences, including next-generation BlueCruise capabilities for a more seamless on-ramp-to-off-ramp experience. The UEV Platform underpins Ford’s planned affordable electric vehicles, beginning with a midsize electric truck targeted around the $30,000 price point.
These developments reflect Apple’s broader hardware refresh cycle and service expansions amid rising component costs and growing demand for AI-capable devices and integrated experiences. As always, details remain subject to change as the company finalizes plans ahead of expected fall announcements.
MacDailyNews Take: These developments reflect Apple’s broader hardware refresh cycle and service expansions amid rising component costs and growing demand for AI-capable devices and integrated experiences. As always, details remain subject to change as the company finalizes plans ahead of expected fall announcements.
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The post Apple preps major Apple Watch refresh, full Mac overhaul, new device leasing program, and Ford Maps partnership appeared first on MacDailyNews.
Apple is preparing for a major expansion of device financing with the upcoming “Apple Upgrade” leasing program — and iOS 27 already contains the tools to enforce it. Code discovered in the beta reveals a new “Restricted Mode” that can limit access to most apps and services on leased iPhones if payments fall behind, while preserving essential functions like Phone, Settings, and Health. Paired with a new “Partner Finance Lock,” this system gives financing partners powerful remote controls without handing over location data.
As Apple partners with Klarna to make iPhones and other devices more affordable through longer-term leases, these findings show exactly how the company plans to protect itself from defaults.
9to5Mac can now confirm that code found in the iOS 27 beta appears to reveal a broader system for managing a financed iPhone, including the ability to restrict apps and services when payments are missed…
If the contract is no longer in good standing, Apple’s system services can place the iPhone in “Restricted Mode,” which blocks access to most apps until the payment or contract issue is resolved, while keeping a small set of apps available…
The code does not appear to cancel, suspend, or otherwise modify App Store subscriptions associated with blocked apps. As a result, a subscription could continue billing even while access to its app is restricted.
Additionally, there isn’t a fixed number of missed payments that automatically triggers the restrictions. The financing provider’s app decides when to lock the device based on its own policies.
Finally, the new framework also introduces a new type of activation lock called “Partner Finance Lock,” which is meant to prevent users from erasing, reselling, or stripping a restricted device for parts.
MacDailyNews Take: It makes perfect sense for Apple to have digital repossession capabilities for leased devices which, after all, users do not own until they are fully paid off.
If you don’t like this financing setup, buy your Apple hardware outright like normal people with basic financial sense.
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In what marks one of its most significant retail model overhauls in years, Apple is preparing to roll out a broad new device leasing initiative called “Apple Upgrade” on July 28th.
Partnering with Swedish financial tech company Klarna Group Plc, the tech giant will allow U.S. customers to lease most models of iPhones, Macs, iPads, and Apple Watches with low monthly installments, expanding hardware subscriptions far beyond its traditional phone-only offerings.
Key Details of the ‘Apple Upgrade’ Program
• Partner Bank: Klarna Group Plc (soft credit check required)
• Supported Hardware: Select iPhones, Macs, iPads, and Apple Watches
• Lease Durations
– 24 months: iPhones & Apple Watches
– 36 months: Macs & iPads
• End-of-Term Options: Upgrade early, pay off balance to own, continue monthly payments, or return device
• Notable Exclusions: Apple Watch SE, entry-level iPad, iPhone 16, MacBook Neo
• Protection Plan: AppleCare+ not bundled (available as an optional add-on)
A Broader Reach Across Apple’s Hardware Ecosystem
For over a decade, Apple’s hardware installment options were anchored by its legacy iPhone Upgrade Program, launched in September 2015 in partnership with Citizens Bank. However, that program was restricted strictly to iPhones and bundled AppleCare+ into every plan.
Under the new arrangement with Klarna, Apple aims to address softening hardware demand and recent supply-chain cost spikes by softening the upfront price tag across almost its entire lineup. Customers will no longer be limited to mobile devices; for the first time, high-end MacBooks and iPads can be structured as multi-year leases directly through Apple Stores and the Apple Online Store.
Trade-Offs and Exclusions
While the new leasing options make expensive hardware more accessible, the service is said to come with a few notable catches:
• No Bundled AppleCare+: Unlike the legacy iPhone Upgrade Program, base monthly payments on Apple Upgrade will only cover the hardware cost. Users wanting theft, loss, or damage coverage must purchase AppleCare+ separately.
• Entry-Level Exclusion: According to reports, Apple is intentionally excluding lower-priced budget devices—such as the Apple Watch SE, base-model iPad, older-generation iPhone 16, and MacBook Neo—to encourage buyers toward mid- and high-tier hardware.
• Sunsetting the Old Guard: With Apple Upgrade launching, Apple plans to stop accepting new enrollments for the original iPhone Upgrade Program, though existing members will be permitted to complete their current terms.
MacDailyNews Take: The new program arrives at a critical moment as average selling prices for consumer tech continue to rise. By framing flagship hardware purchases as digestible monthly subscriptions, Apple hopes to keep ecosystem upgrades steady despite broader macroeconomic pressures. Shifting the financing backend to a third-party partner like Klarna allows Apple to expand leasing across nearly its entire hardware portfolio without taking the credit risk directly onto its own balance sheet.
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Apple is set to roll out a major new device financing program called “Apple Upgrade,” partnering with Swedish fintech Klarna Group Plc, in a significant new option for Apple hardware customers.
The program, scheduled to launch on July 28th, will allow U.S. customers to lease most models of iPhones, Macs, iPads, and Apple Watches through Apple Stores and online. It requires only a simple credit check and is designed to address softening demand and higher device prices by offering more affordable monthly payments.
Bloomberg News reports that according to people familiar with the matter, Apple Upgrade marks one of the biggest changes to the company’s sales model in years. Lease terms will be 24 months for iPhones and Apple Watches, and 36 months for Macs and iPads. Customers will have flexibility at the end of the term: upgrade to a newer device early, pay off the balance to own it outright, keep making payments, or return the device.
The initiative builds on — and in many ways replaces — Apple’s existing iPhone Upgrade Program. By working with Klarna as the financial backer, Apple aims to spur sales without directly shouldering the full credit risk, while making premium devices more attainable as average selling prices continue to climb.
Notable details and limitations include:
• AppleCare+ is not included in the base lease (customers can add it separately).
• Certain newer models, such as the iPhone 16 series, may initially be excluded.
• Availability is currently limited to the U.S. market.
Consumer reactions have been mixed. Proponents see it as a convenient way to stay on the cutting edge of Apple’s ecosystem with lower upfront costs, while critics worry it could encourage perpetual leasing over ownership and increase long-term spending for users who frequently upgrade.
This move comes as Apple faces pressure to innovate its services and hardware sales amid a competitive landscape and macroeconomic challenges. The partnership with Klarna, known for its “buy now, pay later” services, could also expand into broader financing options in the future.
MacDailyNews Take: The program comes on the heels of recent price increases across iPad and Mac lines driven by component cost inflation, aiming to keep monthly friction low for consumers even as average selling prices rise. Shifting the financing backend to Klarna allows Apple to expand leasing across nearly its entire hardware portfolio without carrying credit risk on its own balance sheet.
The news has boosted AAPL shares into the green.
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