Apple Launches Leasing Program for iPhones and Macs via Klarna

Apple announced a new leasing program, Apple Upgrade, on July 28, 2026, in partnership with Klarna, allowing U.S. customers to lease iPhones starting at $17.99 per month. The program also covers Apple Watch, Mac, and iPad, with terms ranging from 12 to 36 months. Customers must pass a soft credit check and can return devices at lease end, purchase them, or upgrade.

According to CNBC, the program is designed to shift focus from high upfront costs to lower monthly payments, especially after Apple raised iPad and Mac prices by at least $100 in June due to a global memory shortage. CNN noted that the average iPhone replacement cycle has stretched to nearly four years, per Bernstein estimates, and that consumers keep their phones for 22 months on average, per Reviews.org. Apple's vice president Karen Rasmussen said in an Apple newsroom release that the program offers 'a more flexible way to pay,' while IDC analyst Nabila Popal told CNBC that more aggressive installment offers are expected in developed markets.

The program replaces Apple's older iPhone Upgrade Program, which required 12 monthly payments and was limited to iPhones. CNN reported that the new plan offers lower monthly costs (e.g., $17.99 vs. $42 for the old upgrade plan) and broader device eligibility, though cheaper models like the iPhone 16, MacBook Neo, base iPad, and Apple Watch SE are excluded. Apple and Klarna have simplified enrollment, with approvals within minutes and no security deposit. Late fees are waived, but leases will be terminated after three months of missed payments.

This move is part of Apple's strategy to smooth revenue seasonality and reduce reliance on hit device cycles, as investors have long suggested. By making devices feel like a subscription, Apple may encourage more frequent upgrades. However, the exclusion of entry-level models and the return requirement may limit appeal. Analysts expect the program to influence how consumers finance electronics, potentially pushing competitors to offer similar leases. Apple Card users get 3% Daily Cash on lease payments, adding an incentive.

Looking ahead, Apple's price increases due to memory shortages may continue, making leasing even more attractive. The program's success could reshape Apple's revenue mix, but it also depends on consumer willingness to commit to monthly payments without ownership. Watch for expansion to more markets or additional device categories.