Apple Launches Klarna-Powered Device Leasing Programme for iPhone, Mac, iPad and Apple Watch

Apple has introduced a new device leasing programme in partnership with Klarna, allowing eligible customers in the United States to pay for selected Apple products through monthly instalments instead of purchasing them outright.

Announced on Tuesday, the new Apple Upgrade programme is available for the iPhone, Apple Watch, Mac and iPad through the Apple Store online, the Apple Store app and physical Apple Store locations across the U.S.

Monthly lease pricing begins at $17.99 for an iPhone, $11.99 for an Apple Watch, $24.99 for a Mac and $11.99 for an iPad. Apple is offering one- and two-year lease options for the iPhone and Apple Watch, while Mac and iPad customers can choose between two- and three-year agreements.

When a lease reaches the end of its term, customers can upgrade to a newer generation of their device, purchase the leased product with a single payment or return it and leave the programme, according to Apple.

Programme arrives as hardware prices face pressure

The launch comes as Apple continues to navigate supply chain challenges linked to the industry-wide memory chip shortage, often referred to as “RAMageddon.” The shortage has increased hardware manufacturing costs and recently prompted the company to raise prices for several Mac and iPad models, although iPhone pricing has so far remained unchanged.

By introducing a leasing option with lower monthly payments, Apple appears to be offering customers an alternative way to manage the higher upfront costs of its devices while maintaining access to its latest hardware.

Klarna manages payments and lease administration.

Customers enrolled in the programme will manage their lease directly through the Klarna app, where they can monitor payment schedules, view upcoming bills and track the remaining balance throughout the agreement.

The partnership also marks a significant change toApple’ss financing strategy in the United States. With the arrival of Apple Upgrade, the company is retiring its existing in-house financing and instalment programmes, including the iPhone Upgrade Program and iPhone Payments.

The official announcement follows a report published last week by Bloomberg’s Mark Gurman, who said Apple was preparing to introduce a lease-to-own option for its devices.

Trade-ins and Apple Card rewards included

Apple said customers can further reduce their monthly lease costs by trading in an eligible existing device through the Apple Trade In programme when enrolling in Apple Upgrade.

In addition, users who make their monthly lease payments with an Apple Card will receive 3% Daily Cash back, providing an additional incentive for customers already using Apple’s financial services.

The new programme expands the payment choices available to Apple customers while giving the company another way to make its devices more accessible as hardware prices continue to face upward pressure.