CUPERTINO, Calif., July 29 (San Francisco News Online) — Apple Inc. (Nasdaq: AAPL) is adding a new way for U.S. customers to pay for its devices: leasing.
The company said its new Apple Upgrade program lets customers lease eligible iPhone, iPad, Mac and Apple Watch devices through the Apple Store online, the Apple Store app and Apple Store locations in the United States. Klarna is the company providing the leasing service.
The change matters because Apple is replacing two older U.S. iPhone payment programs with a new monthly-payment model. For customers, that creates another way to spread out the cost of a device. For Apple and Klarna, it shifts more of the financing role into a partnership structure.
What is Apple Upgrade?
Apple said Apple Upgrade is a leasing program, not a standard purchase plan. In simple terms, a lease lets a customer use a device for a set period while making monthly payments. At the end of the lease, Apple said customers can return the device, buy it with a one-time payment, or move up to a newer model.
Apple said the program offers 12- and 24-month leasing options for iPhone and Apple Watch, and 24- and 36-month options for Mac and iPad.
The starting monthly prices Apple listed are $17.99 for iPhone, $11.99 for Apple Watch, $24.99 for Mac and $11.99 for iPad.
How can monthly payments be lowered?
Apple said customers can reduce monthly payments by trading in an existing device when they first enroll in Apple Upgrade through Apple Trade In.
Apple also said applicants will go through a soft credit check by Klarna that will not affect their credit score.
What happens to Apple’s old payment programs?
With the launch of Apple Upgrade, Apple said it will no longer offer the iPhone Upgrade Program and iPhone Payments in the United States.
Current members of the iPhone Upgrade Program can, when eligible, choose to lease a new device with Apple Upgrade, finance with Apple Card Monthly Installments, buy outright or use carrier financing, Apple said.
Why does this matter for customers and Apple?
For customers, Apple Upgrade gives another way to get Apple hardware without paying the full price up front. That can make it easier to budget for a new phone, tablet, laptop or watch over time.
For Apple, the move changes how the company sells hardware in the U.S. by putting the payment flow through a leasing partnership instead of keeping the older iPhone financing programs in-house. It also gives Klarna a bigger role in Apple’s device-payment process.
The rollout is limited to the United States, and Apple said the program is available through its online store, app and physical retail locations there.
