Apple to lease iPhones, other products to users through Klarna partnership - Fox Business

What the report says

Fox Business reported that Apple is partnering with Klarna to offer a new U.S. device leasing program called Apple Upgrade. Announced Tuesday, the program will let customers lease eligible iPhone, iPad, Mac and Apple Watch products through Apple’s website and Apple Store locations in the United States.

According to the report, Apple Upgrade will provide 12- and 24-month lease terms for iPhone and Apple Watch, while Mac and iPad customers can choose 24- or 36-month terms. Monthly prices are listed as starting at $17.99 for iPhone, $11.99 for Apple Watch, $24.99 for Mac and $11.99 for iPad. Customers may also use Apple Trade-In to reduce their monthly lease payments.

At the end of a lease, customers can return the device, buy it outright or move to a newer Apple model. Fox Business reported that Apple is discontinuing its existing iPhone Upgrade Program and iPhone Payments as Apple Upgrade rolls out. Those earlier options allowed qualified buyers to pay for an iPhone through 24-month, interest-free installment loans, with the iPhone Upgrade Program also including AppleCare+ and an upgrade option after 12 payments.

The move places Apple more directly in the growing market for installment-style consumer financing. Fox Business cited a Gallup survey saying 51% of Americans have used installment plans for online purchases. While Klarna is widely associated with buy now, pay later services, the Apple program described in the report is structured as a lease rather than a traditional BNPL loan.