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Apple may launch device rentals for iPhone, Mac, and Watch

Bloomberg says Apple could launch a US rental-style Upgrade program on July 28, expanding beyond iPhone to Mac, iPad, and Apple Watch.

Image: ITzine

Apple is reportedly preparing a US long-term device rental service with monthly payments, effectively turning the iPhone into a subscription product. According to Bloomberg, the new Apple Upgrade program could launch as soon as July 28 and would expand beyond the iPhone to include iPad, Mac, and Apple Watch.

The model would work like a subscription with a buyout option. Customers would pay each month, then choose whether to keep the device, switch to a newer model, or return it at the end of the term. A key detail: enrollment would require approval from Klarna, which would handle the credit check.

That would make the program a broader version of Apple’s existing iPhone Upgrade Program, which is currently limited to smartphones and a narrower structure. Bloomberg describes the new offer as closer to how US carriers and large retailers already sell hardware: not a one-time purchase, but a long payment cycle with scheduled upgrades.

That approach is already common in the US. Samsung and Google both offer flagship financing and trade-in programs, while Verizon and AT&T have long relied on installment plans tied to returning older devices.

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Which devices are included

Bloomberg says the lineup will not be comprehensive. The program is expected to exclude:

  • Apple Watch SE
  • base iPad
  • iPhone 16
  • MacBook Neo

For iPhone and Apple Watch, the maximum term would be 24 months. For iPad and Mac, it would be 36 months. At the end of the term, users could continue payments and buy the device, upgrade earlier to a newer model, or return the hardware.

If customers want to upgrade early or cancel the agreement, Apple and Klarna may charge an additional fee.

Another notable difference from the current iPhone Upgrade Program: AppleCare+ would not be included in the base package. Customers who want extended coverage would need to add it separately.

Why Apple is using Klarna

Apple already has financing tools, but the decision to rely on Klarna suggests it still prefers to offload some lending and payment risk to partners. That fits with the company’s direction after shutting down Apple Pay Later. In Wallet and Apple Pay, Apple has increasingly leaned on third-party options.

For Apple, the upside is obvious: monthly payments can make expensive devices easier to buy, while encouraging customers to upgrade more often. Bloomberg says Apple does not plan to immediately shut down the current iPhone Upgrade Program, but if the broader model works smoothly, the older program could eventually stop being offered to new users.

Marcus Vance

Enterprise Editor

Marcus follows the money. He covers enterprise software, cloud architecture, and the tectonic shifts in Big Tech strategy. He translates dense earnings calls and complex M&A activity into actionable insights about where the industry is actually heading. If a tech giant makes a silent pivot, Marcus is usually the first to notice.

via ITzine

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