Apple plans to launch a new leasing and financing program for many of its flagship products, transforming its standard ownership model brand-wide, according to a Bloomberg report. The new program is called Apple Upgrade, and the tech giant is partnering with financial technology company Klarna, best known for its buy now, pay later and flexible payment options.
Like many of Klarna’s other programs, Apple Upgrade will allow consumers to split their purchases into installments and pay over time. Klarna also offers an app to manage payments and shopping-related features. It is therefore likely (although not confirmed) that Apple Upgrade will include similar integration.
Apple Upgrade will apply to new iPhones, iPads, Macs and Apple Watches. While this is a radical change for Apple, it’s not completely unheard of, as it’s expected to replace the existing iPhone Upgrade Program, a current monthly financing program exclusively for iPhones. If you decide to acquire a new Apple product through the program, there are a number of exciting new features of iOS 27 that you can experience.
How the Apple Upgrade will work
The rental duration varies depending on the equipment. For Apple Watches and iPhones, the duration will be 24 months, but will extend to 36 months for Macs and iPads.
It differs from the existing iPhone Upgrade Program, which only offers 24-month financing terms but allows users to upgrade their phone after 12 payments, and also includes AppleCare+ with theft and loss (not included in the new program). Notably, the iPhone upgrade program is managed directly by Apple, while the Apple upgrade will largely be Klarna’s responsibility, meaning Klarna will also take on a significant portion of the financial risk.
Certain purchases are excluded, including all business and educational purchases, which often include special pricing, purchase controls, and volume purchasing options. The iPhone 16, MacBook Neo, Apple Watch SE, and entry-level iPad are also excluded from the new program (although any other products the company is expected to launch in 2027 are likely included). The timing coincides with a number of price increases on Apple devices in response to the current shortage of storage and memory chips, giving the impression that Apple is trying to mitigate some of the price increase by spreading the burden across multiple payments (alongside the announcement that the company will now pay you more for your old iPhones).
