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2w ago

Apple Launches Apple Upgrade Leasing Program for iPhone, iPad, Mac and Watch

The U.S.-only program uses Klarna to replace Apple’s old iPhone financing and shifts device costs to monthly leases that change who owns devices and who bears payment risk.

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One of the more interesting parts of Mohan's note is what he says the program could do to Apple's direct relationship with customers.
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Overview

  • Apple made Apple Upgrade available this week as a U.S. offering that lets customers lease select iPhones, Apple Watches, iPads and Macs instead of buying them outright.
  • Leases run 12 or 24 months for iPhone and Watch and 24 or 36 months for Mac and iPad with published starter prices such as $17.99 for some iPhones and $11.99 for some iPads and Watches.
  • Klarna handles approvals and billing with a soft credit check, instant in-store take-home on approval, and lease management through the Klarna app.
  • Customers do not own leased devices during the term and may face early-termination fees, charges for damage or loss unless they buy protection, and a policy from Klarna that three missed payments can end a lease and require the outstanding balance.
  • Advocates and repair experts warn the program shifts ownership, upgrade cadence and credit exposure onto consumers and a BNPL partner while Apple says it will not disable device features for missed payments.