Apple launched "Apple Upgrade" on July 28, a leasing program built with Klarna that lets customers pay monthly for iPhones, iPads, Apple Watches, and Macs instead of buying them outright. The program replaces the iPhone Upgrade Program and extends subscription-style payments across Apple's entire hardware lineup.
Apple started leasing its hardware instead of just financing it. On July 28, the company launched "Apple Upgrade," a program built in partnership with Klarna that lets customers pay monthly installments for iPhones, iPads, Apple Watches, and Macs rather than buying them outright, replacing the iPhone Upgrade Program.
iPhone leasing starts at $17.99 a month, with Apple Watch leasing beginning at $11.99. Customers can choose 12- or 24-month lease terms for phones and watches, or 24- or 36-month terms for tablets and computers.
At the end of a term, they can upgrade to a new device, keep their current one, or return it; early changes may come with fees, which is standard for leasing arrangements. Apple Upgrade is available through Apple's online store, its mobile app, and physical retail locations.
Apple already tried running its own lending operation with Apple Pay Later, only to wind it down. Partnering with Klarna looks like Apple learning from that experience and outsourcing the financial complexity to a company that already has the infrastructure in place.
For Apple shareholders, the shift to subscription hardware could stabilize revenue at a time when smartphone upgrade cycles have been stretching longer. Consumers who might otherwise delay a $1,200 purchase for another year are more likely to commit when the cost is framed as $17.99 a month.
Source: Crypto Briefing
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