Apple partners with Klarna to launch broad lease-to-own scheme
The tech giant is extending multi-year payment terms to Macs and iPads as it navigates memory chip shortages and significant price hikes.
Apple is partnering with deferred payment processor Klarna to introduce a new lease-to-own program for its hardware ecosystem, a move designed to offset the impact of recent price increases. Dubbed Apple Upgrade, the initiative is scheduled to launch on July 28 and will expand financing options beyond the iPhone to include iPads, Macs, and Apple Watches.
Under the new structure, consumers will be able to pay for devices over multi-year periods. Lease terms are set at up to 24 months for iPhones and Apple Watches, while Macs and iPads will carry terms of up to 36 months. At the conclusion of the lease, customers may choose to keep the devices or return them, with options available for upgrades to newer models.
The program marks a strategic shift from Apple’s existing iPhone Upgrade scheme. The company plans to disallow new sign-ups for the legacy program in favour of this broader offering. According to reports from Bloomberg, transactions under the new scheme may incur additional fees in certain cases, though specific details on pricing structures have not been fully disclosed.
This financial restructuring comes as Apple contends with severe supply chain constraints, particularly a shortage of memory chips driven by demand from the artificial intelligence sector. These bottlenecks have forced the company to implement significant price hikes across its product lineup, with increases reaching up to $1,300 on certain high-end devices such as the M3 Ultra Mac Studio.
Eligibility for the new program will exclude budget models, including the base iPad, iPhone 16, Apple Watch SE, and MacBook Neo. The launch coincides with a transitional period for the company under new CEO John Ternus, as it also manages a legal dispute with AI startup OpenAI. TechCrunch has reached out to both Apple and Klarna for further comment on the rollout.
