Apple Leasing Program Aims to Make Higher-Priced Devices More Affordable
Apple has introduced a new leasing program in partnership with Klarna, giving eligible customers the option to pay for its devices through monthly installments.
The program, called Apple Upgrade, is available for the iPhone, Apple Watch, Mac, and iPad on the Apple Store online, in the Apple Store app, and at Apple Store locations in the United States. Leasing prices start at $17.99 per month for iPhone, $11.99 per month for Apple Watch, $24.99 per month for Mac, and $11.99 per month for iPad.
Apple Upgrade offers one- and two-year leasing options for iPhone and Apple Watch, and two- and three-year options for Mac and iPad. At the end of the lease term, customers can upgrade to the latest generation of their device, purchase their current device with a one-time payment, or return it and exit the program.
The rollout of the program comes as Apple has been struggling with supply chain issues related to "RAMageddon," which is driving up the price of hardware. Apple recently announced price hikes for its Mac and iPad lineups, sparing the iPhone for now.
- Customers can manage their lease directly in the Klarna app, where they can view their billing schedule and track remaining payments.
- With the launch of the new Upgrade program, Apple is discontinuing its existing in-house financing and installment programs in the U.S.
- Customers can lower their monthly lease payments by trading in their existing device through Apple's Trade In program.
Apple says that customers can earn 3% Daily Cash back when using Apple Card to make their lease payments. The new program seems to be Apple's answer to making its higher-priced devices more manageable for consumers.
"We are excited to introduce Apple Upgrade, a new way for our customers to experience Apple's latest devices," said Apple in a statement.
The official launch follows a report from Bloomberg's Mark Gurman last week, which revealed that Apple was preparing to introduce a lease-to-own program for its devices.