Apple wants to make its pricier hardware easier to say yes to.
The company is partnering with the Swedish firm Klarna, a buy-now-pay-later provider, to launch a new leasing program called Apple Upgrade, according to a Bloomberg report.
The program is reportedly set to launch July 28, letting customers lease iPhones, iPads, Macs, and Apple Watches instead of paying full price upfront.
It marks a notable shift for Apple’s hardware business at a moment when the company is raising prices across much of its lineup.
How Leasing an iPhone or Mac Would Work
The program will roll out first in the United States, available both at retail stores and online, according to AppleInsider.
Customers who sign up will pay a monthly fee tied to the length of the lease: up to 24 months for an iPhone or Apple Watch, and up to 36 months for a Mac or iPad.
Buyers can pay off the remaining balance early, switch to a newer model partway through the term, or, once the lease ends, choose to either keep the device or hand it back.
TechCrunch notes some of those transactions, such as returning a device or upgrading mid-term as some devices are losing upcoming software support, may carry an additional fee, though specifics haven’t been detailed.
Enrollment will require approval from Klarna through a soft credit check, and unlike Apple’s existing iPhone Upgrade Program, AppleInsider reports the new plan won’t bundle in AppleCare coverage.
What’s Excluded, and What Happens to the Old Program
Not every device qualifies. AppleInsider reports the Apple Watch SE, the base-level iPad, the iPhone 16, and the unreleased MacBook Neo will all be left out of Apple Upgrade at launch, and the program won’t extend to business or education purchases.
The rollout also marks the beginning of the end for Apple’s current iPhone Upgrade Program: TechCrunch reports Apple plans to stop accepting new sign-ups for that older program as it shifts customers toward the broader, multi-device Apple Upgrade plan instead.
The partnership builds on an existing relationship between the two companies. AppleInsider notes Apple first added Klarna installment options to Apple Pay back in October 2024.
The company later leaned further on Klarna and other third-party providers for a Pay Later feature built directly into the Wallet app after shutting down its own Apple Pay Later service in 2024, rolling that option out across iOS 18 and iOS 26 in September 2025.
Why Apple Is Rolling This Out Now
The move comes as Apple faces rising hardware costs, with CEO Tim Cook acknowledging that price hikes are becoming increasingly unavoidable amid the AI-driven memory chip shortage, “RAMageddon.”
Apple has already raised prices on several products, and Apple Upgrade is largely considered to be designed for making those increases easier to manage by spreading payments over time instead of full cost upfront.
The launch also comes during a busy period for Apple, with incoming CEO John Ternus settling into leadership and the company fighting a trade secrets lawsuit against OpenAI, making a leasing option that helps sustain device sales a timely move.
Source: Apple to Launch ‘Upgrade’ Device Leasing Program With Klarna to Spur Sales
