'Apple Upgrade' Leasing Programme To Launch On July 28, Will Allow Users To 'Rent' iPhones, Macs and iPads

Apple is preparing to launch a new device leasing programme called Apple Upgrade on July 28, according to a report by Bloomberg's Mark Gurman. The service will cover most iPhone, Mac, iPad and Apple Watch models, and unlike a conventional payment plan, it functions closer to a car lease, with customers paying monthly and choosing at the end of the term whether to keep the device, return it, or move on to something newer. Fintech company Klarna has signed on as the financial backer for the programme for users in the US.

Why is Apple doing this now?

The timing lines up closely with Apple's own pricing decisions. The company raised prices by hundreds of dollars across its Mac and iPad lineups last month, citing an industry-wide memory shortage that has been worsened by the ongoing boom in AI data centre construction. The iPhone was left out of that round of price hikes, but industry watchers widely expect increases when new models arrive in September. Apple Upgrade is expected to be positioned as a cheaper monthly alternative to the company's existing financing options, landing right as that pricing gap opens up.

How the leasing terms work?

Under the reported structure, lease terms will run 24 months for iPhones and Apple Watches, and 36 months for Macs and iPads. Signing up will require only a soft credit check rather than a full credit review. Customers will have the flexibility to pay off their device early, switch to a newer model partway through the lease, or keep the device once the term ends, though some of these choices may come with an additional fee depending on the circumstances.

What's excluded from the programme?

Not everything in Apple's lineup will qualify. AppleCare is not bundled into Apple Upgrade, a notable departure from the existing iPhone Upgrade Programme, especially given that AppleCare pricing itself has risen in recent times. On the hardware side, the Apple Watch SE, the entry-level iPad, the iPhone 16 and the MacBook Neo have all been left out of the programme. Business and education purchases are excluded as well, meaning Apple Upgrade will be limited to individual consumer purchases at launch.

To make room for the new programme, Apple is reportedly set to stop accepting new sign-ups for the existing iPhone Upgrade Programme and its standard financing options once Apple Upgrade goes live.