After Raising Prices, Apple Wants You To Lease Their Devices
Apple is launching a new device leasing service called Apple Upgrade, set to begin on July 28. Developed in partnership with Klarna, the service offers subscription-based leasing options for iPhones, Macs, iPads, and Apple Watches with flexible terms designed to keep users cycling through new hardware.
The leasing model varies by device type: iPhone and Apple Watch subscriptions run for 24 months, while iPad and Mac leases extend to 36 months. The service is designed to provide flexibility beyond traditional purchase models, allowing subscribers to upgrade to newer devices before their lease term ends without committing to ownership.
Subscribers maintain options to pay off their devices early or upgrade to newer models mid-lease, effectively keeping them within Apple’s ecosystem without requiring outright ownership. This approach addresses the premium pricing of Apple’s hardware lineup by distributing costs across monthly payments rather than requiring large upfront investments.
The move positions Apple to capture recurring revenue from device cycles while reducing friction for consumers upgrading to latest models. By leveraging Klarna’s payment infrastructure, Apple can offer installment-based leasing at scale across its major product categories. The service comes as Apple has faced scrutiny over rising device prices, particularly in premium markets where flagship iPhones and Macs command significant price points. This leasing alternative may help Apple maintain market penetration among price-conscious consumers who might otherwise delay upgrades.