Apple Launches Product Leasing Program in the U.S. with Klarna

Apple has launched Apple Upgrade, a new program that allows customers in the United States to lease certain company products through monthly payments. The initiative is a partnership with the "buy now, pay later" service Klarna, enabling consumers to acquire devices via installments.

The program includes iPhones, Apple Watches, Macs, and iPads. Leasing options vary, offering one- and two-year terms for iPhones and Apple Watches, and two- or three-year terms for Macs and iPads. Monthly costs start at $17.99 for iPhones, $11.99 for Apple Watches, $24.99 for Macs, and $11.99 for iPads.

However, not all products are available under the Apple Upgrade program. Notably excluded are the iPhone 16 models, certain Apple Watch SE and MacBook Neo configurations, Mac mini, and the Studio Display. Customers can reduce their monthly payments by trading in eligible devices through Apple's existing Trade In program.

This new leasing service replaces Apple's previous iPhone Upgrade Program in the U.S. At the end of the lease term, customers have the option to upgrade to a newer device, purchase their current device outright, or return it. The program's introduction follows recent price increases on other Apple products like Macs and iPads, attributed to rising memory and storage costs, though iPhones, the company's most profitable line, were not affected by those specific price hikes.