Apple shifts US device financing to Klarna lease-to-own model
Monthly installments for iPhones, Macs, and iPads start from $11.99, with terms extending up to three years for select hardware categories.
Apple has officially launched Apple Upgrade, a new device leasing programme in partnership with Klarna, marking a significant shift in its consumer financing strategy within the United States. The initiative allows eligible customers to acquire iPhones, Apple Watches, Macs, and iPads through monthly installments, effectively replacing Apple’s existing in-house financing and installment options for new enrollees.
The programme offers flexible leasing terms ranging from one to three years, depending on the device category. Specifically, iPhone and Apple Watch customers can choose one- or two-year options, while Mac and iPad users are offered two- or three-year terms. At the conclusion of the lease period, participants may upgrade to the latest generation device, purchase the current unit with a one-time payment, or return it to exit the agreement.
Pricing for the new structure begins at $17.99 per month for the iPhone, $11.99 for the Apple Watch and iPad, and $24.99 for the Mac. Customers can manage their leases directly through the Klarna app, which provides visibility into billing schedules and remaining payment balances. Additionally, enrollees can reduce their monthly costs by trading in existing devices via the Apple Trade In program and earn 3% Daily Cash back when using an Apple Card for payments.
The rollout comes as Apple contends with supply chain constraints linked to an industry-wide shortage of memory chips, a situation often referred to as “RAMageddon.” These disruptions have driven up hardware costs, leading to recent price increases for the Mac and iPad lineups, while the iPhone pricing remains unchanged. The new leasing model appears designed to make these elevated price points more manageable for consumers by spreading the cost over a longer duration.
This move follows a report by Bloomberg’s Mark Gurman, which indicated Apple was preparing a lease-to-own program. While the new system replaces the legacy iPhone Upgrade Program and standard installment plans for new users, current participants in the previous scheme remain grandfathered into their existing terms. The service is available via the Apple Store online, the Apple Store app, and physical Apple Store locations across the United States.
