Apple Unveils Subscription Leasing for iPhones and Macs

Apple is shifting from outright device sales to a subscription-like leasing model with the launch of Apple Upgrade on July 28 in the U.S. The program, backed by fintech Klarna, lets customers pay monthly for iPhones, iPads, Macs, and Apple Watches instead of buying them upfront Source: Clarin.

The new leasing model

Contracts span 24 months for iPhone and Apple Watch, 36 months for Mac and iPad. Users can upgrade, keep, or return devices at term end, sometimes with extra fees. A soft credit check is required Source: El Colombiano. The program replaces Apple's current iPhone Upgrade Program and traditional installment plans, and does not include AppleCare coverage Source: El Mundo.

Exclusions and restrictions

Not all products qualify: the Apple Watch SE, basic iPad, iPhone 16, and MacBook Neo are excluded, as are business and education purchases Source: Infobae. Additionally, leaked iOS 27 code suggests Apple could lock app access on financed iPhones if payments are missed—a feature called App Managed Features and Partner Finance Lock Source: Infobae.

Market reaction

Klarna's stock rose nearly 9% on the partnership news, while Apple shares also edged up Source: La Republica. Analyst Francisco Jeronimo of IDC said the model could boost device renewal cycles by making high prices more digestible Source: Infobae. The move comes amid Apple's recent price hikes due to memory chip shortages Source: El Español.