Apple NASDAQ:AAPL, a consumer-technology company producing iPhones, Macs and other electronic devices, launched a U.S. device-leasing program through Klarna NYSE:KLAR, a digital-payments and financing company. The Apple Upgrade program replaces the existing iPhone Upgrade Program and iPhone Payments offering. It provides monthly leasing options for iPhones, Macs, iPads and Apple Watches through Apple's website, mobile application and U.S. retail stores.
Customers can lease iPhones and Apple Watches for 12 or 24 months, while Macs and iPads are available under 24- or 36-month terms. Monthly payments begin at $17.99 for an iPhone, $11.99 for an Apple Watch or iPad and $24.99 for a Mac. Klarna will conduct a soft credit check that Apple said would not affect the applicant's credit score.
Customers can lower their monthly payments by trading in an existing device and receive 3% cash back when using an Apple Card. At the end of the term, they can return the product, purchase it through a single payment or upgrade to a newer device. Financially, the $17.99 entry point converts the cost of an iPhone into a recurring monthly obligation, potentially broadening payment flexibility without changing the underlying product price disclosed to each customer. Investors may examine whether the program helps Apple support device demand and upgrade activity, although Reuters did not provide a sales forecast or expected financial contribution.