Top News

Apple is set to launch Apple Upgrade, a Klarna-backed device leasing program, on July 28, covering most iPhone, Mac, iPad, and Apple Watch models. Here's how it works and which devices are excluded.

Apple is preparing to launch a new device leasing programme called Apple Upgrade on July 28, according to a report by Bloomberg's Mark Gurman. The service will cover most iPhone, Mac, iPad and Apple Watch models, and unlike a conventional payment plan, it functions closer to a car lease, with customers paying monthly and choosing at the end of the term whether to keep the device, return it, or move on to something newer. Fintech company Klarna has signed on as the financial backer for the programme for users in the US.

Why is Apple doing this now?

The timing lines up closely with Apple's own pricing decisions. The company raised prices by hundreds of dollars across its Mac and iPad lineups last month, citing an industry-wide memory shortage that has been worsened by the ongoing boom in AI data centre construction. The iPhone was left out of that round of price hikes, but industry watchers widely expect increases when new models arrive in September. Apple Upgrade is expected to be positioned as a cheaper monthly alternative to the company's existing financing options, landing right as that pricing gap opens up.

How the leasing terms work?