Apple launches device leasing programme in US via Klarna partnership
- Apple has partnered with Klarna to offer a device leasing programme in the US.
- Customers can lease iPhones, Macs, iPads and other Apple products with an option to upgrade annually.
- The programme is not available to everyone; it requires a credit check and approval.
- Users pay a monthly fee and can return or exchange devices after 12 months.
- The plan is currently limited to the United States with no word on international rollout.
Apple ties up with Klarna for device leasing
Apple has quietly launched a new device leasing programme in the United States, allowing customers to pay a monthly fee for iPhones, Macs, iPads and other products instead of buying them outright. The programme, called Apple Upgrade, is run in partnership with the Swedish fintech firm Klarna.
Unlike the existing iPhone Upgrade Programme, which was tied to AppleCare+ and required a carrier plan, this new offering is a pure leasing model. Customers can choose a device, pay a fixed monthly amount for 12 months, and then decide whether to upgrade to a newer model, continue paying, or return the device.
Who qualifies for the new programme
Apple Upgrade is not open to everyone. The company and Klarna will run a credit check on applicants before approving them for the plan. Only customers with a satisfactory credit history in the US are likely to qualify.
The programme is currently available only to residents of the United States. Apple has not announced any plans to bring it to India or other markets. The monthly fee varies depending on the device model and configuration selected.
How the leasing model works
Under the terms of the programme, customers select a product from Apple's online store or retail locations. They then sign up for the 12-month lease through Klarna's platform. Payments are made monthly, and at the end of the term, users have three options: upgrade to the latest model, continue paying month-to-month, or return the device with no further obligation.
The plan covers not just iPhones but also MacBooks, iPads, Apple Watches, and even accessories like AirPods. This is a significant expansion from Apple's earlier upgrade offerings, which were largely limited to iPhones.
What this means for consumers
For users who prefer to always have the latest hardware, the leasing model removes the hassle of selling old devices or paying large upfront costs. The monthly payments are typically lower than instalment purchase plans because the customer never owns the device.
However, there are trade-offs. Lessees cannot unlock or resell the device during the lease period. If the device is damaged beyond normal wear and tear, additional charges may apply. The programme also requires users to maintain insurance or AppleCare+ coverage.
Industry analysts see this as Apple's attempt to increase customer retention and create a recurring revenue stream. By tying users to a 12-month upgrade cycle, the company ensures a steady demand for its newest products.
Apple and Klarna have not disclosed the total number of devices available under the programme or the exact interest rates applied. Customers are advised to read the terms carefully before signing up.
The programme is now live on Apple's US website and in select retail stores. It remains to be seen whether the company will expand the leasing model to other countries, including India, where credit penetration and consumer preferences differ significantly.