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Apple starts Klarna device leasing on July 28
Apple plans to launch Apple Upgrade on July 28, replacing current financing with Klarna-backed leases for many iPhones, Macs, iPads, and Apple Watches.
Image: TNW
Apple is preparing to launch Apple Upgrade on July 28, a Klarna-backed leasing program for hardware that would mark one of the biggest shifts in how the company sells devices, according to Bloomberg.
The service is expected to cover most iPhone, Mac, iPad, and Apple Watch models. Apple declined to comment, while Klarna did not immediately respond to a request for comment.
The setup is closer to a car lease than a traditional installment plan. Customers will be able to pay off a device early, upgrade to a newer model before the term ends, or return it when the lease expires, though some of those options will include an extra fee. Lease terms are set at 24 months for iPhone and Apple Watch, and 36 months for Mac and iPad. Buyers will also need to pass a soft credit check.
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Apple reportedly plans to stop new enrollments in its existing iPhone Upgrade Program and standard financing as it shifts to Apple Upgrade. The company intends to market the new option as a way to reduce monthly payments versus current plans. One notable difference: AppleCare is not included. That omission stands out because Apple recently increased AppleCare+ prices as part of broader price hikes tied to the global memory chip shortage.
Not every product will qualify. Bloomberg says the Apple Watch SE, entry-level iPad, iPhone 16, and MacBook Neo are excluded, and the program will not cover business or education purchases.
The rollout comes just weeks after Apple raised prices by hundreds of dollars across Macs, iPads, and other devices amid an industrywide memory shortage that has pushed component costs higher. Apple is also widely expected to increase iPhone prices when new models arrive in September.
For Klarna, the deal is a significant distribution win after its stock fell sharply following its September 2025 IPO. Shares in the Swedish buy-now-pay-later company jumped by as much as 11 percent on the news.
Bloomberg previously reported that Apple had been working on an in-house hardware subscription service since at least 2022, but scrapped the effort in late 2024 after software problems and regulatory concerns. Partnering with Klarna lets Apple offer leasing without taking on the financial risk itself.
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 TNW
