Apple to launch Klarna-backed Apple Upgrade program July 28

Apple is preparing to launch a major new hardware leasing program called Apple Upgrade on July 28, marking a significant shift in how it sells iPhones, Macs, iPads, and Apple Watches. The service, backed by the financial technology company Klarna, will allow U.S. customers to lease most models through monthly payments rather than purchasing them outright.

The program will function similarly to a car lease or subscription. Customers will have the flexibility to pay off the device early, upgrade to a newer model before the lease ends, keep the device after completing the term, or simply return it at expiration. Some of these transactions may incur additional fees. Lease terms are set for 24 months for iPhones and Apple Watches, and 36 months for Macs and iPads. Enrollment will require a soft credit check performed by Klarna.

Not all devices will be eligible. According to reports, the Apple Watch SE, entry-level iPad, iPhone 16, and MacBook Neo will be excluded from the program initially. Business and education purchases are also not covered. Unlike Apple's existing iPhone Upgrade Program, the new leasing plan will not include AppleCare coverage in its base offering, though...