Apple Reportedly Shifting to Device Leasing with Klarna Partnership

Apple is reportedly preparing to shift its financing programs for iPhones, Macs, iPads, and Apple Watches to a leasing model. The new program, expected to be called "Apple Upgrade," is slated to launch in U.S. stores and online on July 28.

Under the new system, customers would lease iPhones and Apple Watches for 24 months, and Macs and iPads for 36 months. At the end of the lease term, devices would be returned, though customers may have the option to purchase the device or start a new lease. Details on any additional fees have not been disclosed.

Apple is reportedly ceasing new enrollments in its existing Apple Card Monthly Installments and iPhone Upgrade Program. The new leasing model differs from the current iPhone Upgrade Program, as automatic ownership at the end of the term will no longer be standard, and AppleCare will not be included.

The move to leasing is anticipated to lower monthly costs for consumers, partly through extended payment periods. Currently, Macs, iPads, and Apple Watches are paid off over 12 months, a term that would be significantly longer under the new program.

Fintech company Klarna, which became an official Apple reseller earlier this year, is partnering on this initiative. Apple has not yet released specifics regarding monthly rates, total payments, or end-of-lease purchase prices.