TL;DRApple is launching Apple Upgrade on July 28, a Klarna-backed leasing program for iPhones, Macs, iPads, and Apple Watches that replaces its current financing.
Apple is preparing to launch Apple Upgrade, a device leasing program backed by Klarna that will mark one of the biggest changes to how the company sells hardware, Bloomberg reported on Monday. The service is planned to go live on July 28 and will support most iPhone, Mac, iPad, and Apple Watch models, according to people familiar with the matter cited by Bloomberg. Apple declined to comment, and Klarna did not immediately respond to a request for comment.
The program works like a car lease. Customers can pay off the device early, upgrade to a new model before the term ends, or return the device when the lease is up, with some of those transactions carrying an additional fee. iPhone and Apple Watch leases will run for 24 months, while Mac and iPad terms will extend to 36 months, and users will need to pass a soft credit check to qualify.
Apple plans to discontinue new enrolments for its existing iPhone Upgrade Program and standard financing to make way for Apple Upgrade, Bloomberg reported. The company intends to advertise the new program as a way to lower monthly payments compared to current options. Unlike the iPhone Upgrade Program, Apple Upgrade does not include AppleCare, a notable omission given that Apple recently raised AppleCare+ prices as part of a broader wave of cost increases driven by the global memory chip shortage.
