Apple launches Klarna-backed device leasing program in the United States

Apple has launched Apple Upgrade, a U.S. device leasing program provided by Klarna that changes how the company sells recurring access to its core hardware lineup. The program is available through Apple Store online, the Apple Store app, and U.S. Apple Store locations, and covers iPhone, Apple Watch, Mac, and iPad models that Apple lists as eligible.

The July 28 announcement positions Apple Upgrade as a leasing product rather than a traditional installment loan or outright purchase. Apple says iPhone leases start at $17.99 per month, Apple Watch and iPad leases start at $11.99 per month, and Mac leases start at $24.99 per month. The company also says customers can reduce monthly payments by trading in an existing device when they first enroll, and Apple Card users can earn 3 percent Daily Cash on lease payments.

How the lease works

Apple says iPhone and Apple Watch leases are offered in 12- and 24-month options, while Mac and iPad leases are offered in 24- and 36-month options. Customers apply through Klarna, with Apple saying the application uses a soft credit inquiry that does not affect the applicant's credit score. Approved customers can complete the transaction online or in store, choose delivery or pickup where available, and manage lease information through Klarna.

At the end of the term, customers can start a new lease for a newer device, buy the leased device with a one-time payment, or return it and leave the program. Apple says adding AppleCare can simplify service, return, and upgrade handling, though eligibility and credit approval still apply.

What changes for current iPhone buyers

The biggest immediate shift is that Apple says it will no longer offer the iPhone Upgrade Program or iPhone Payments in the United States. Current iPhone Upgrade Program customers who are eligible will be able to choose a new Apple Upgrade lease, Apple Card Monthly Installments, carrier financing, or an outright purchase.

The launch gives Apple a broader subscription-like path for hardware ownership at a time when flagship phones, watches, tablets, and laptops are increasingly expensive and replaced less often. It also puts Klarna deeper into Apple's U.S. retail checkout flow. For consumers, the important distinction is that Apple Upgrade is a lease: lower advertised monthly payments may come with return, eligibility, term, and buyout conditions that differ from financing a device to own.

Sources

• www.apple.com

Cover photo by Melike B on Pexels, used under the Pexels License.