Apple has launched a new leasing service called Apple Upgrade, allowing customers to rent iPhones, iPads, Macs, and Apple Watches for a monthly fee. The initiative represents another step toward the subscription model the company has been building, locking users into its ecosystem. The service is powered by Klarna, the Swedish buy-now pay-later firm, and marks the end of the previous iPhone Upgrade Program.
Monthly fees start at $18 for iPhone
Prices vary by device. For an iPhone 17e, the monthly fee starts at $18 for 24 months. The Apple Watch costs $12 per month, the Mac $25, and the iPad $12. After the term, customers can return the device, keep paying for a new one, or buy it out. Trade-in is available to lower the monthly cost. Those using Apple Card get 3 percent Daily Cash back.
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A model that erodes ownership
Kyle Wiens, CEO of iFixit, criticized the initiative: "Apple is using its huge cash advantage to turn us all into renters rather than owners. That will cost people both money and agency." Unlike direct purchase, leasing does not allow resale, and the return conditions require the device to be in the same condition, with possible extra charges for wear and tear. Apple offers AppleCare for additional coverage.
Leasing as a response to the affordability crisis
Whitney Barkley-Denney, deputy director at the Center for Responsible Lending, called it part of the "financialization of the affordability crisis." More people are turning to installment plans for basic goods. Apple Upgrade is not a bargain: $18 per month for 24 months equals $432 for a $599 iPhone, but without ownership. Instead, she recommends buying refurbished, keeping the device as long as possible, fixing it when broken, and selling it when done.
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For more on Apple pricing strategies, see our article on Mac Mini M5: wait times stretch to three months as prices jump 25%. The new service also aligns with changes in Apple's ecosystem, such as the recent iOS 27 features for Phone and FaceTime. To learn more about buy-now pay-later, check the Wikipedia page on the subject.
Source: https://www.wired.com/story/apple-products-are-all-just-subscription-services-now
