Apple to Launch Device Leasing Program in US

Apple is preparing to launch a new device leasing program in the United States, referred to as "Apple Upgrade," according to recent reports. The initiative is expected to cover a significant portion of iPhone, Mac, iPad, and Apple Watch models, signaling a notable shift in Apple's strategy for hardware sales.

The program will be facilitated through a partnership with fintech company Klarna, which will provide the necessary financing. "Apple Upgrade" is structured like a subscription service, allowing users to pay off their device early, upgrade to a newer model during the lease term, or choose to keep or return the device at the end of the rental period. Lease terms are set at 24 months for iPhones and Apple Watches, and 36 months for Macs and iPads.

In the U.S., customers will need to pass a soft credit check managed by Klarna, which will not impact their credit score. Apple aims to present "Apple Upgrade" as an option with lower monthly payments compared to existing installment plans. As part of this rollout, the company will cease new registrations for its original iPhone Upgrade Program and standard installment payment options.

Notably, the "Apple Upgrade" program will not include AppleCare+ coverage, unlike the previous iPhone Upgrade Program. Additionally, certain devices, including the Apple Watch SE, entry-level iPads, the upcoming iPhone 16, and MacBook Neo, will be excluded. Corporate and educational purchases are also not eligible. This move follows Apple's recent price increases on several devices and market expectations of further price hikes for new iPhone models.