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Apple Upgrade with Klarna
Apple is preparing to launch Apple Upgrade, a leasing program backed by Klarna, on July 28, according to Bloomberg as cited by PYMNTS and eMarketer.
“Apple will launch a new “Apple Upgrade” leasing program later this month in the US, according to a new report from Bloomberg”
The program is set to support most iPhone, Mac, iPad, and Apple Watch models and will work “like a subscription,” with customers able to pay off devices early, upgrade before their term ends, or return the device when the term is up.
eMarketer says Apple Upgrade will launch first in the US online and in-store, and that it will require a soft credit check with terms varying by device.
The plan is also described as replacing Apple’s current iPhone payment programs, with eMarketer saying Apple will retire its current iPhone financing programs after Apple Upgrade launches and AppleInsider adding that the new scheme will not include AppleCare coverage.
Terms, eligibility, and timing
Apple Upgrade is reported to run for 24 months for iPhones and Apple Watches, while Mac and iPad plans run for 36 months, with 9to5Mac and AppleInsider both describing the device-by-device durations.
Both outlets also say the program requires a soft credit check and can resemble a car lease, letting users upgrade early to a new model during the term or keep the device at the end, though some actions may incur extra fees.
AppleInsider adds that the program initially launches in the United States at retail and online and that it will exclude certain products including the Apple Watch SE, the base-level iPad, the iPhone 16, and the MacBook Neo.
eMarketer further specifies that business and education purchases are excluded, and it says Apple will phase out new enrollments for its current iPhone payment programs in favor of Apple Upgrade.
Price pressure and financing shift
The rollout is tied to Apple’s recent price increases “to the tune of hundreds of dollars” across devices, with PYMNTS reporting that the company is responding to an industrywide memory shortage.
“Apple is set to launch on July 28 a new program named Apple Upgrade, developed with Klarna”
PYMNTS quotes Apple CEO Tim Cook telling the Wall Street Journal, “We’re doing our best to mitigate the huge increases that are being passed to us, and we’ve been trying to shield our customers from the increases, but the situation has become unsustainable,” and it adds that the increases did not extend to the iPhone.
eMarketer frames the timing as strategic, saying Apple raised prices because of the memory shortage and that it is widely expected to raise iPhone prices again when new models arrive in September.
In parallel, the new structure shifts financing risk toward Klarna, with El Mundo saying the program “shift[s] much of the financial risk to Klarna,” and with The Guardian noting that Apple Upgrade is part of a broader effort to manage supply-chain-driven pricing pressure through monthly payments.
