Apple Upgrade Program Will Let You Lease an iPhone Without Sticker Shock - CNET

What the report says

CNET reports that Apple has introduced a new Apple Upgrade program in the United States, allowing customers to lease iPhones, iPads, Macs and Apple Watches directly from the company rather than paying the full purchase price upfront. The program, available starting today according to CNET, is enabled by Klarna and can be accessed online, in the Apple Store app or at physical Apple Store locations.

Under the program, CNET says monthly lease pricing begins at $18 for an iPhone and $12 for an Apple Watch. Apple is offering 12- and 24-month terms for iPhones and Apple Watches, while iPads and Macs can be leased over 24 or 36 months. Customers with eligible trade-in devices may be able to reduce their monthly payments. Klarna will conduct a soft credit check, which CNET reports will not affect applicants’ credit scores.

At the end of a lease, customers can return the device, upgrade, or buy it for an additional fee, according to the report. The move gives Apple another way to present its products as more affordable on a monthly basis, even if the total price of the device is not reduced.

CNET frames the launch against a backdrop of rising consumer electronics costs, reporting that Apple recently increased prices across its device lineup amid an industry-wide memory shortage. The article also cites Forrester analyst Dipanjan Chatterjee, who said the leasing approach may help Apple manage price sensitivity by replacing upfront “sticker shock” with predictable monthly payments.