Apple's Upgrade Program: Understanding the Terms
Apple has launched its new Upgrade program, allowing customers to lease select devices like iPhones, iPads, Macs, and Watches with low monthly payments. The company claims users won't pay more than the full price of a device over one- to three-year leases in most cases. However, while it appears beneficial on paper, there are important caveats. At the end of the lease term, customers can either purchase the device by paying off its remaining balance, return it and lose any trade-in value, or upgrade immediately with new monthly payments for a newer model. The program is structured as a loan through Klarna, which does not charge interest but may terminate agreements after three missed payments. Klarna's terms suggest that unpaid balances could be sent to collections if not resolved by the final reminder date. While Apple confirmed there will be no restrictions on device functionality for missed payments, users should consider how these monthly obligations might add up alongside other financial commitments.
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Topics: Apple device pricing leasing Upgrade program