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Apple will launch a new device leasing program called 'Apple Upgrade' on July 28 in the U.S. to drive sales, Bloomberg reported Tuesday, citing people familiar with the matter.
Representing a shift in strategy for Apple, the step coincides with price increases for iPads, MacBooks, and hardware to offset memory and storage costs from the AI data center expansion. Based on the report, Apple formed a partnership with Klarna Group to provide backing for the program.
The program is designed to give users broad flexibility over how long they keep and pay for their devices, allowing customers to finance most iPhone, iPad, Mac, and Apple Watch models.
Lease terms will vary by device; iPhones and Apple Watches will carry a 24-month term, while iPads and Macs will run for 36 months.
Functioning much like a subscription, the service lets users pay off their device early, upgrade to a newer model before their term ends, or keep the device once the leasing period concludes.
According to Bloomberg, customers can also choose to return the device at the end of the term and walk away without any additional obligations.
The program will be available both in Apple's physical retail stores and online. Apple intends to market it as offering lower monthly payments than its existing financing options.
Unlike the current iPhone Upgrade Program, Apple Upgrade will not include AppleCare. Some devices, including the Apple Watch SE, the entry-level iPad, the iPhone 16, and the MacBook Neo, will not be eligible for the program.
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