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Apple Reportedly to Launch 'Apple Upgrade' Leasing Program

Reporters say the plan would shift Apple's business toward recurring revenue by turning device purchases into multi-year leases backed by Klarna.

Overview

  • Bloomberg and other outlets report Apple will debut Apple Upgrade in the U.S. on July 28, with Klarna providing financial backing and both companies declining to comment.
  • The program is described as a leasing model with 24-month contracts for iPhone and Apple Watch and 36-month contracts for iPad and Mac, and access would require a soft credit check.
  • Users would be able to return devices, pay to keep them at lease end, or upgrade before the term finishes, though some actions may carry extra fees.
  • Bloomberg says Apple plans to stop accepting new customers into its existing financing programs and funnel new sign-ups into Apple Upgrade instead.
  • The move fits Apple’s long-term push for more recurring revenue, follows a shelved in-house subscription plan from 2024, and could lower monthly outlays while encouraging faster upgrade cycles for consumers.