Apple to partner with Klarna to offer leases on devices

The iPhone maker is reportedly set to launch a new leasing program called “Apple Upgrade” in collaboration with lending and banking platform Klarna this month.

The move marks a major change in Apple’s device pricing strategy after nearly 20% price hikes in June, which the company blamed on rising memory and AI chip costs tied to growing data center demand.

The subscription-style program will cover most iPhone, Mac, iPad, and Apple Watch models. Lease terms are expected to run for 24 months on iPhones and Apple Watches and 36 months on Macs and iPads. Customers will need to pass a soft credit check to qualify.

The program will allow users to pay off their devices early, upgrade before the lease ends, or return them at the end of the term. However, additional fees may apply in some cases, and the plan will not include AppleCare coverage.

After the launch, Apple is expected to discontinue its financing and iPhone payment programs.