Apple plans to lease iPhones for $17.99 a month through partnership with Klarna - CNBC

What the report says

CNBC reported that Apple plans to introduce a U.S. device leasing program called Upgrade, allowing customers to lease an iPhone for as long as two years with prices beginning at $17.99 per month. The program, announced Tuesday, is being launched through a partnership with Klarna and will be available through Apple’s retail stores and online store.

According to CNBC, customers who pass a soft credit check will be able to choose one- or two-year iPhone leases. Apple Watch leases will also be offered, while Macs and iPads will be available on two- or three-year lease terms. Devices must be returned at the end of the lease, though customers may be able to buy the device with an additional payment or move into a new model. CNBC reported that Klarna will not require a security deposit or charge late fees, but leases can be terminated after three months of missed payments.

The move comes shortly after Apple raised starting prices for iPads and Macs, citing a global memory shortage. CNBC said analysts are also watching for possible iPhone price increases, with higher component costs and Apple’s shift toward premium devices adding pressure. The lease structure could make more expensive hardware appear more affordable by emphasizing monthly payments rather than upfront prices.

CNBC also reported that Apple will discontinue its existing U.S. iPhone Upgrade Program and transition customers to Apple Upgrade. The change puts Apple in closer competition with wireless carriers, which have long used installment plans and trade-in offers to keep customers in multiyear service relationships.