Apple launches leasing program for iPhone, iPad, Mac and Watch
Apple introduced an upgrade program that lets U.S. customers lease its devices with monthly payments, offering 12- to 36-month terms and the option to trade in existing hardware.
Apple announced a new leasing service in the United States that allows customers to obtain iPhones, iPads, Macs or Apple Watches through monthly payments. The program, run with financing partner Klarna, starts at $18 per month for an iPhone and $12 per month for an Apple Watch, with 12- and 24-month contracts respectively. Longer-term leases of 24 or 36 months are available for iPads and Macs.
Consumers can select a plan online, via the Apple Store app or at a physical Apple retail location. Trade-in of an existing device can reduce the monthly rate. At the end of the lease, users may return the product, purchase it for a nominal fee, or upgrade to a newer model.
"Having already raised prices, Apple has limited room to push them higher without further extending upgrade cycles," said Dipanjan Chatterjee, vice president and chief analyst at Forrester. "The new leasing program is a clever response: It doesn’t reduce the price of an iPhone, but it changes how consumers perceive the cost by replacing sticker shock with a predictable monthly payment."
Apple says enrollment takes only a few minutes, and Klarna conducts a soft credit check that does not affect the applicant’s credit score.