Apple launches lease-to-own Upgrade program for iPhone, Mac and other devices
Apple introduced a new Upgrade program that allows customers to lease iPhones, Macs and other products with the option to return, upgrade or keep the device, using monthly payments facilitated by Klarna.
Apple announced a new Upgrade program that offers a lease-to-own model for its iPhone, Mac, iPad and other hardware. Under the scheme, customers can make a low monthly payment, return the device, upgrade to a newer model or retain ownership at the end of the term. The program expands on the earlier iPhone Upgrade Program and the recent Mac Upgrade offering.
Apple said the service will be managed through a partnership with Klarna, a provider of buy-now-pay-later financing. AppleCare will be sold separately, and the monthly payment calculations are based on the full retail price of the device. The company indicated that the model is intended to lower the upfront cost for high-priced items, including upcoming products such as a rumored high-end iPhone model priced above $2,000.
Analysts have noted that the program could help Apple smooth revenue streams amid a challenging global economy and supply-chain constraints. Critics have warned that the financing structure may increase consumer debt risk, especially for customers who may struggle to meet payment obligations. Apple has not disclosed specific terms regarding device restrictions for missed payments, but similar arrangements in the past have allowed the manufacturer to limit access to the device until payments are current.
The rollout is expected later this year, with Apple positioning the Upgrade program as an alternative to third-party financing options that are already available in many markets.