Apple has launched a new device leasing programme called Apple Upgrade. The programme is provided by Klarna, a well-known buy-now-pay-later company. It allows eligible customers in the United States to lease Apple products. Monthly payments start at just $11.99 for an iPad or Apple Watch. This strategic partnership represents a major shift in how Apple sells devices.
The programme offers flexible leasing terms for different product categories. Customers can choose one-year or two-year leases for iPhones and Apple Watches. Macs and iPads are available with two-year or three-year terms. When a lease ends, customers can upgrade, purchase the device, or return it. Klarna does not charge any additional fees beyond the device's retail price.
This initiative comes as Apple faces rising hardware costs due to component shortages. The company recently raised prices on MacBooks and iPads. Analysts believe the leasing model helps shift attention from higher upfront costs. If customers paid full price at once, many would delay their purchases. The programme makes premium devices more accessible through manageable monthly payments.
Apple has discontinued its previous iPhone Upgrade Programme in the United States. The old programme only covered iPhones and had higher monthly costs. Apple Upgrade now covers four major product categories under one plan. Industry experts say this move could strengthen customer loyalty over time. The partnership with Klarna signals a broader trend toward subscription-based models.
