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Apple is reportedly planning on ditching its long-running iPhone Upgrade plan for a new "leasing" program. The new "Apple Upgrade" program is allegedly going to launch at the end of the month.According to Bloomberg's Mark Gurman, the new plan will be similar to how a car lease works with options to upgrade a new device early or keep or return the iPhone at the end of the lease.One upside of the plan is that it will supposedly cover most Apple devices including iPhones, Mac, iPad and Apple Watch models. Apple is allegedly partnering with Klarna, a digital banking platform based out of Sweden. You may be most familiar with Klarna and its "Pay Later" program, similar to offerings from PayPal and Affirm.However, entry-level devices like the base model iPad, Apple Watch SE and MacBook Neo are reportedly not eligible for the new program. Additionally, Apple is not including AppleCare with the plan, unlike the iPhone Upgrade Program. Unfortunate since Apple just raised AppleCare subscription prices.How the 'Apple Upgrade' program could work
(Image credit: Getty Images)Per Gurman, starting July 28 this Apple Upgrade program would replace the iPhone Upgrade plan with 24-month leases for iPhones and Apple Watches, and 36-month leases for iPads and Macs. Apparently, you will need to be approved via a soft credit check.Current iPhone Upgrade subscribers can upgrade to the newest model, presuming they've kept up 12 months of payments. Gurman says you'll be able to upgrade to a new model earlier if you want, like a car lease. That would just extend the lease another two years.Allegedly, Apple is planning to pitch the change as a way for customers to have lower payments versus current financing programs. Most customers, at least in the U.S., who don't purchase directly from Apple likely lock into contracts with the big three network carriers that offer "free" iPhones, but really it's subsidized into your bill over the contract period.Get instant access to breaking news, the hottest reviews, great deals and helpful tips.What it replaces
