The company plans to launch a device leasing service called Apple Upgrade on Tuesday, July 28, Bloomberg reported. The program will initially be available in the US through Apple stores and online.
Apple is partnering with buy-now-pay-later service Klarna to finance the leases, sources told Bloomberg. The company plans to promote Apple Upgrade as a way to get lower monthly payments than its current financing programs.
Customers will be able to pay off a device early, upgrade to a newer model before the lease ends, keep the device after completing payments, or return it at the end of the term. Some options may include an additional fee.
Leases for iPhones and Apple Watches will last 24 months, while Mac and iPad plans will run for 36 months. Customers will need to qualify through a soft credit check.
The company is also expected to stop accepting new customers for its existing iPhone Upgrade Program and standard financing plans as it rolls out Apple Upgrade. Unlike the current program, the new leasing service won't include AppleCare.
Some devices won't be eligible, including the Apple Watch SE, entry-level iPad, iPhone 16, and MacBook Neo. Business and education purchases will also be excluded.
The leasing program comes weeks after Apple raised prices by hundreds of dollars on Macs, iPads, and other devices because of an industrywide memory shortage. Apple is also widely expected to increase prices when the iPhone 18 is introduced in September.
Apple previously considered creating its own hardware subscription service but canceled the plan in 2024. By partnering with Klarna, the company can offer device leases without taking on the financial risk itself.
Klarna and Apple didn't comment on Bloomberg's reporting.
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