Apple is reportedly preparing to launch a new lease-to-own program called Apple Upgrade that would cover iPhones, Macs, iPads, and Apple Watches, replacing its existing iPhone Upgrade Program and standard device financing options. According to Bloomberg’s Mark Gurman, the program will function much like leasing a car, giving customers the flexibility to upgrade to a newer device before their lease ends or simply hold onto the device once the term is up. Klarna is said to be partnering with Apple as the financial backer for the initiative, and interested customers will need to pass a soft credit check to enroll.
The program is expected to kick off on July 28th and will offer 24-month lease terms for iPhones and Apple Watches, while iPads and Macs will come with longer 36-month agreements. Not every device will qualify, though. Entry-level products like the base iPad, the iPhone 16, the Apple Watch SE, and the popular MacBook Neo are reportedly excluded from the program. Another notable change from the current iPhone Upgrade Program is that AppleCare will not be bundled into the new lease plans — an omission that may sting a bit given that Apple’s extended warranty service has been getting pricier.
The timing of the launch is particularly interesting given the broader economic context surrounding Apple’s product lineup. The company raised prices on nearly all of its hardware just last month, citing component shortages and rising RAM costs as key factors driving up manufacturing expenses. While the iPhone managed to dodge those increases this time around, there is growing speculation that the upcoming iPhone 18 Pro series could push pricing even higher when it arrives later this year. For consumers already feeling squeezed by inflation and supply chain-driven price hikes, a lease program could make premium Apple devices feel more attainable on a month-to-month basis, even if the total cost over time ends up being comparable or slightly more than buying outright.
Still, questions remain about how customers will respond to what essentially turns device ownership into something closer to a subscription model. Leasing phones has become increasingly common across the industry, but extending that approach to full Mac computers and tablets represents a notable shift in how Apple positions its most expensive products. With reports suggesting the program could launch within weeks, it likely won’t be long before we see whether shoppers embrace the idea of renting their tech instead of buying it outright.