Apple's Latest Move: A Lease-to-Own Program for iPhones, iPads, and Macs

Apple is reportedly teaming up with deferred payment processor Klarna to launch a new lease-to-own program for its devices. Bloomberg reported Tuesday that the program — dubbed Apple Upgrade — is set to launch next Tuesday.

How It Works

The lease term for iPhones and Apple Watches will be up to 24 months, while leases for Macs and iPads will be up to 36 months. The devices can either be kept or returned at the end of the leasing period, while upgrades to new devices will also be available (hence the name of the program).

A Conservative Move

A leasing program is an obvious move for Apple, at this point. The iPhone maker has been battling supply chain issues wrought by "RAMageddon" — the industry-wide shortage of memory chips that is driving up the price of hardware. To deal with these issues, Apple recently announced that it would be raising prices, and Upgrade clearly seems designed to make those hiked prices more palatable to consumers.

What's Next

TechCrunch reached out to Apple and Klarna for more information. As new CEO John Ternus takes the reins, the company is currently facing a hectic transitional period, including a legal battle with AI startup superstar OpenAI.

The Bottom Line

The new program seems like a conservative move for Apple, which is currently facing a hectic transitional period. As new CEO John Ternus takes the reins, the company also made the decision to enter into a legal battle with AI startup superstar OpenAI — suing the company for alleged trade theft. In short: the company has its hands full, and anything that can shore up sales and keep the business headed in the right direction is a smart move.