Aamir Siddiqui / Android Authority
TL;DR
- Apple is reportedly partnering with Klarna for new device lease plans that will replace its existing financing options.
- Customers will be able to lease hardware for 24 or 36 months, with options to return, keep, or upgrade their hardware at the end of each lease.
- The Apple Upgrade program is expected to launch on July 28.
Inflation driving up prices of electronics is bad for consumers, but it’s also an issue for manufacturers: you can raise sticker prices on goods like smartphones to turn a better profit on each unit, but if prices get too high, your customer base will start to shrink as shoppers are priced out. Apple is apparently responding to a challenging economy by changing up its financing options for iPhones and other products, with new device lease options reportedly rolling out next week.
As reported by Mark Gurman for Bloomberg, Apple is gearing up to launch a new program called Apple Upgrade. Unlike Apple’s existing device financing options, Apple Upgrade will be a leasing arrangement with multi-year terms, after which customers will have the option to purchase their leased device, return it, or upgrade to a new model on a new lease.
Most iPhone, iPad, Mac, and Apple Watch models will be available through Apple Upgrade. iPhones and Apple Watches will be available through 24-month plans, while iPads and Macs will be leased for 36 months. Apple is partnering with Klarna for device financing.
Once lease payments end, customers will be able to return their device, keep it, or trade it in for a newer model — transactions that will sometimes incur an additional fee.
The new Apple Upgrade program will apparently replace Apple’s existing iPhone Upgrade Program and regular device financing options, a shift that would leave customers the choice to either lease a device or pay in full up front. Gurman expects Apple Upgrade to launch on July 28.
