Apple to introduce new financing program next week for iPhone, iPad, Apple Watch, and Mac
Apple is replacing the iPhone Upgrade Program with Apple Upgrade, teaming up with Klarna.
Apple's new financing program debuts next week | Image by PhoneArena
On July 28, one week from today, Apple plans to introduce a new leasing program for the iPhone, Mac, iPad and Apple Watch devices. This news comes from Bloomberg's Mark Gurman, who spoke to people familiar with the matter. Gurman's sources asked to remain anonymous since the new plan has yet to be announced by Apple.
Apple Upgrade will debut next week as a new leasing option for iPhone, iPad, Apple Watch, and Mac
Apple Upgrade will debut a partnership between Klarna and the tech giant. Klarna is known for its buy now, pay later service. Using the fintech company, a consumer can split online purchases into more affordable interest-free monthly installments.
Subscribers will still be able to upgrade to a new iPhone after making 12 payments
Apple Upgrade will reportedly debut in the US and will be available for purchases made at Apple Stores throughout the country and online. The new program will work similarly to a subscription service, and users will be able to pay off a device early during the leasing period, although that might involve paying an additional fee. At the end of the term, the device can be returned.
Leases for the iPhone and Apple Watch will run for 24 months. iPad and Mac plans will have 36-month terms. Those looking to subscribe to the program will undergo a soft credit check. This is a background review of your credit report that doesn't have an effect on your score.
With a shortage of memory chips due to strong demand for them from AI data centers, we expect Apple to hike iPhone prices this year when the 2026 models are introduced in September. That makes this new plan timely, and Apple is expected to position it as a way for consumers to make lower monthly payments than what they would be paying using current financing plans.
The current iPhone Upgrade Program is ending
The introduction of Apple Upgrade will mean the end of the current iPhone Upgrade Program. With the latter, you finance an unlocked iPhone model directly from Apple for 24 months, paying no interest. After making 12 monthly payments, a subscriber can trade in the iPhone they are leasing for the newest model.
The new financing plan will not include AppleCare+.
Apple Upgrade will not include AppleCare+, which is part of the current iPhone Upgrade Program. The new financing option will not include the Apple Watch SE, entry-level iPad, iPhone 16 and MacBook Neo. Business and education purchases cannot be financed using the Apple Upgrade.
By teaming up with Klarna, Apple can offer its customers a financing option that it won't have to provide the capital for.
On Wall Street, Klarna's shares peaked at $20.78, up $2.01 once Gurman's story hit the wire. The stock has since pulled back to $18.92, up 15 cents with about 40 minutes left in the trading day. After trading as low as $322, Apple has more than recovered and is now trading at $328.01, up $1.42 with 40 minutes left in the trading day.
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