Apple is launching a device leasing program called Apple Upgrade on July 28 with Klarna as the financial backer, according to Bloomberg’s Mark Gurman. Leases will run 24 months on iPhones and Apple Watches and 36 months on Macs and iPads, cover most models, and require a soft credit check, with customers able to pay off early, trade up, keep the device, or hand it back, some of which carry an extra fee. Apple will stop new enrollments in the iPhone Upgrade Program and its standard financing once Upgrade goes live, and the new plans leave out AppleCare. Klarna shares rose as much as 11% on the report. Apple abandoned its own in-house hardware subscription plan in 2024, and routing the program through Klarna lets it push lower monthly payments weeks after raising Mac and iPad prices without carrying the credit risk.
