CUPERTINO, Calif., July 29 (San Francisco News Online) — Apple is changing how U.S. customers can pay for its hardware.
The company said it has launched Apple Upgrade, a leasing program offered with Klarna that lets shoppers pay monthly for eligible iPhone, iPad, Mac and Apple Watch devices. Apple said the program is available through the Apple Store online, the Apple Store app and Apple Store locations in the United States.
What is Apple Upgrade?
Apple Upgrade is a lease, not a traditional purchase plan. Instead of paying the full price upfront, customers make monthly payments for a set term. Apple said the program offers 12- and 24-month leasing options for iPhone and Apple Watch, and 24- and 36-month leasing options for Mac and iPad.
At the end of the lease, Apple said customers can return the device, buy it with a one-time payment or upgrade to a newer model.
How much does it cost?
Apple said monthly prices start at $17.99 for iPhone, $11.99 for Apple Watch, $24.99 for Mac and $11.99 for iPad.
Apple also said customers can lower their monthly payment by trading in an existing device through Apple Trade In when they first enroll in Apple Upgrade.
Apple said applicants will go through a soft credit check from Klarna, and that check will not affect their credit score.
What happens to Apple’s old payment programs?
With Apple Upgrade, Apple said it will no longer offer the iPhone Upgrade Program or iPhone Payments in the United States.
That matters for current users as well as new ones. Apple said current members of the iPhone Upgrade Program can, when eligible, choose to lease a new device with Apple Upgrade, finance through Apple Card Monthly Installments, buy outright or use carrier financing.
Why does this matter?
For customers, the biggest change is simpler: Apple now has a new monthly-payment path for buying or using its devices, with leasing options that can bring down the upfront cost.
For Apple, the launch replaces two existing U.S. payment programs with a lease model tied to Klarna. For Klarna, the deal puts the Swedish fintech company in a larger role behind Apple’s U.S. hardware financing.
The program is part of Apple’s broader effort to give shoppers more ways to get into its ecosystem of devices, while changing the terms under which those devices are paid for.
