Apple Launches Leasing Program for iPhones and Other Devices in Partnership with Klarna
Apple has announced a new leasing program called Apple Upgrade, allowing U.S. customers to lease iPhones starting at $17.99 per month through a partnership with buy-now-pay-later provider Klarna. The service will be available both online and in physical stores, offering one- or two-year leases for iPhones, as well as similar terms for Apple Watch, Macs, and iPads. The program replaces the previous iPhone Upgrade Program offered via Citizens Bank, which charged over $42 per month with financing included. Analysts suggest that leasing could help shift customer focus from higher upfront prices to more manageable monthly payments, especially amid recent price increases on devices like the iPad and Mac due to rising component costs. The new offering is expected to influence consumer behavior by encouraging shorter device replacement cycles and reducing reliance on seasonal sales spikes for revenue. Apple will compete directly with carriers who have traditionally offered similar financing options.
Topics: Apple consumer finance iPhone leasing Klarna partnership