Apple India Upgrade Program: 36-month device leasing with Klarna from next week

Apple to launch device leasing program in India

Apple is set to introduce a new 'Upgrade' device leasing program in India starting next week. The initiative will allow customers to pay for iPhones, iPads, and Macs in monthly instalments over up to 36 months.

The program is being rolled out in partnership with Swedish fintech firm Klarna. This is a departure from Apple's traditional outright-sale model and signals a push toward subscription-style device ownership.

How the Upgrade program works

Under the plan, customers will not own the device outright. Instead, they will make monthly payments for a fixed tenure. At the end of the term, they can choose to upgrade to a newer model or continue using the device after completing payments.

Sources indicate the program will cover Apple's entire lineup — including the latest iPhones, iPad Pro models, and MacBook Air. Pricing for each tier has not been disclosed yet, but analysts expect monthly payments to be lower than typical credit card EMIs.

Klarna partnership and payment flexibility

Klarna's role in the program is to underwrite the payment plans and handle credit checks. The company is known for its 'buy now, pay later' services in Europe and the US, and this marks its deepest integration with Apple in India.

Users will apply for the plan via Apple's online store or retail outlets. Approval will depend on creditworthiness. Once approved, the device will be unlocked and fully functional, but ownership will remain with Apple until all payments are made.

Missed payments could lead to device restrictions

Code found in the iOS 27 beta suggests Apple may remotely restrict or lock leased devices if payments are missed. The code references a 'restricted mode' that could limit access to core features like calls, app downloads, and iCloud syncing.

Apple has not officially confirmed these measures. But the language in the leaked code points to a system similar to carrier-locked phones, where the device becomes unusable on other networks if the contract is breached.

Timing and market context

The launch comes months after Apple raised prices across its product range in India. The iPhone 17 Pro Max, for instance, now starts at over Rs 1.6 lakh. The Upgrade program is seen as an attempt to keep premium devices accessible to a wider customer base.

India is one of the fastest-growing markets for Apple. The company has been expanding its retail presence and manufacturing operations in the country. The leasing model could help Apple lock in customers for longer periods and encourage regular upgrades.

Competitors like Samsung and OnePlus already offer similar upgrade plans. Apple's entry into this space will likely intensify competition in the premium segment.

Industry watchers will be closely watching the uptake in the first few months. If successful, the program could be extended to other Apple products like the Apple Watch and AirPods Pro. Official details and pricing are expected to be announced on launch day next week.