Apple has partnered with deferred payment processor Klarna to launch a new lease-to-own program called Apple Upgrade. According to a Bloomberg report, the service will start on July 28, 2026, allowing consumers to finance purchases of iPhones, iPads, Macs, and Apple Watches with monthly payments, with the option to return or keep the device at the end of the term.
The program offers differentiated terms by product type
Customers can choose lease plans up to 24 months for iPhones and Apple Watches, while Macs and iPads can be leased for up to 36 months. At the end of the contract, the device can be returned or purchased outright, and upgrades to newer models are available during the lease period. Bloomberg notes that some transactions may incur additional fees. The program essentially replaces the old iPhone Upgrade program, which will no longer accept new enrollments.
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Why Apple is pushing leasing amid rising prices
The move comes as Apple has recently raised device prices due to the global memory chip shortage, dubbed 'RAMageddon'. The AI industry is consuming a significant portion of memory production, driving up component costs. With Apple Upgrade, the company makes higher prices more palatable by lowering the upfront barrier for consumers. Leasing is a proven strategy to sustain demand during periods of tech inflation.
New CEO John Ternus steers Apple through a complex phase
CEO John Ternus, who recently took the helm, inherits a company facing multiple challenges: besides a legal battle with OpenAI over alleged trade secret theft, Apple must navigate the transition to new business models. The leasing program with Klarna represents an attempt to solidify revenue and build customer loyalty in an increasingly competitive market.
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For more on AI-related security threats, read the article on CrowdStrike Reveals Worm Hiding in AI Development Pipelines. Also, the recent iOS 26.6 update is covered in Apple Seeds iOS 26.6 and iPadOS 26.6 Release Candidates to Developers. For more about Klarna, see the Wikipedia page on Klarna.
