Apple rolls out Klarna-backed iPhone leasing

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Apple launches iPhone leases

Highlights

iPhone leases start at $17.99 a month.
Klarna will conduct a soft credit check.
Terms range from 12 to 36 months.
Customers may return, buy, or upgrade devices.

CNBC reported that the program, called Apple Upgrade, will be available through Apple retail stores, its website and the Apple Store app. Applicants will undergo a soft credit check conducted by Klarna, which Apple says will not affect their credit scores.

Leasing expands across Apple devices

Customers will be able to lease an iPhone or Apple Watch for 12 or 24 months. Macs and iPads will carry terms of 24 or 36 months, with starting monthly prices of $24.99 for a Mac and $11.99 for either an iPad or Apple Watch.

At the end of a contract, users can return the device, upgrade to a newer model, or make an additional payment to purchase it. Existing devices can be traded in to reduce monthly costs, while customers paying with Apple Card can receive 3% Daily Cash.

Apple is discontinuing its U.S. iPhone Upgrade Program and iPhone Payments offering as it moves customers toward the broader leasing plan. Existing participants will be able to consider Apple Upgrade, carrier financing, Apple Card installments, or an outright purchase when they become eligible.

Higher prices reshape device financing

The launch follows price increases for Macs and iPads amid an industrywide shortage of memory components. Although iPhone prices have not yet risen, analysts expect higher production costs to place pressure on future models, making lower advertised monthly payments increasingly important to Apple’s sales strategy.

Leasing also gives Apple a more direct alternative to installment plans offered by U.S. wireless carriers. Unlike a conventional purchase plan, however, customers do not automatically own the device after completing the scheduled payments; they must return it or pay the specified buyout amount.

A shift toward recurring hardware relationships

The program could help Apple reduce its dependence on major product launches by spreading device revenue across longer periods. It may also shorten replacement cycles by making upgrades easier to present as a manageable monthly expense rather than another full-price purchase.

For consumers, the central calculation will be the total cost rather than the starting payment. Leasing may appeal to people who upgrade regularly, while customers who keep phones for several years may find conventional ownership more economical.

Earlier, we reported that new macOS malware steals Telegram data and targets crypto wallets.

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