Apple and Klarna to launch "Apple Upgrade" leasing program in the United States
Apple and buy-now-pay-later provider Klarna will introduce a leasing service on July 28 that lets U.S. customers finance most iPhone, iPad, Mac and Apple Watch models for 24 or 36 months.
Apple announced a partnership with Klarna to roll out a new leasing service, called "Apple Upgrade," in the United States on Tuesday, July 28. The offering will let customers finance most iPhone, iPad, Mac and Apple Watch models, with 24-month terms for iPhones and Apple Watches and 36-month terms for iPads and Macs. Users can choose to pay off the device early, upgrade to a newer model before the term ends, or keep or return the device after the lease expires.
"Apple Upgrade will require a soft credit check, and additional fees may apply in some cases," the report noted.
The program excludes certain lower-priced items, such as the Apple Watch SE, entry-level iPad, iPhone 16 and the MacBook Neo. Klarna, a buy-now-pay-later service similar to Affirm, will handle the financing. Apple plans to discontinue new sign-ups for its existing iPhone Upgrade Program once the new service begins, and the new lease will not bundle AppleCare+ coverage. Marketing materials are expected to highlight lower monthly payments compared with current financing options, positioning the service as a replacement for the older iPhone Upgrade Program and other financing products.