Apple to launch Klarna-backed device leasing program on July 28
Apple is preparing to launch a device leasing program called Apple Upgrade on July 28, backed by the buy now, pay later company Klarna, Bloomberg reported on July 21, citing people familiar with the matter. The service will let US customers acquire iPhones, Macs, iPads and Apple Watches through monthly payments rather than buying the devices outright, according to TechCrunch.
Lease terms will run 24 months for iPhones and Apple Watches and 36 months for Macs and iPads, TechCrunch reported. Customers will be able to pay off a device early, switch to a newer model before the term ends, or return the device when the lease concludes. The program requires a soft credit check through Klarna and does not include AppleCare coverage, according to AppleInsider.
Apple will discontinue new enrollments in its existing iPhone Upgrade Program and standard financing options as Apple Upgrade rolls out, according to reporting by Bloomberg’s Mark Gurman cited by The Next Web. Apple had developed an in-house hardware subscription service since 2022 but shelved the effort in late 2024 after running into software and regulatory issues, the earlier Bloomberg reporting said. Partnering with Klarna lets Apple offer the leasing option without taking on the underlying financial risk itself.
Apple declined to comment, and Klarna did not immediately respond to a request for comment, The Next Web reported. Klarna shares rose as much as 11 percent following the report, a notable move for a company whose stock has fallen since its September 2025 initial public offering.
The program arrives as Apple has raised prices on several of its higher-end devices, which analysts have linked to increased memory chip costs, according to Technology.org. The Motley Fool reported that a leasing structure could push Apple’s iPhone revenue toward steadier, more subscription-like sales if the reported terms hold.
