Apple could have a new way to get its expensive devices to customers in the near future without having to pay the full price when they lease them. The company is talking of launching a new leasing programme - tentatively called the Apple Upgrade programme - which allows customers to pay a monthly payment for iPhones, MacBooks, iPads and Apple Watches.
According to reports, the programme will be launched in the US as early as July 28 and Apple could work with Klarna, one of the major players in the buy-now-pay-later and consumer financing space. But Apple has not yet officially announced the plan (or date for the launch) and so the details of the programme may differ.
How Apple's Reported Upgrade Programme Could Work
Unlike traditional device purchases, where customers pay the full price upfront or just go on with standard financing plans, the Apple Upgrade programme would work more like a lease. They would pay monthly payments on a fixed basis for a fixed period of time and then pick what to do with the device at the end of the term.
Users can return the device, purchase it outright or upgrade to a new device. Early repayment is also possible on the part of the owners, and further charges may be added depending on the terms of the deal.
The expected lease duration is different for each product category. iPhone and Apple Watch leases could run for 24 months, while Mac and iPad leases could go for 36 months.
Monthly Payments Could Be Lower
One of the biggest attractions of the programme could be lower monthly payments compared to some of Apple’s existing instalment options. The leasing model could make premium Apple products more accessible to customers who do not want to pay a large amount upfront.
Apple is also considering changing some of its existing financing arrangements once the new programme starts. The firm could phase out its current iPhone Upgrade Programme and some other financing options in favor of the new leasing system.
In case of a customer experience, customers are expected to undergo a soft credit check before being approved for the programme.
Not All Apple Devices May Be Eligible
Some products may not be eligible for the leasing programme. Apple Watch SE, entry-level iPad, iPhone 16 and MacBook Neo are among the devices reportedly excluded.
Apple’s customers purchasing products from its education or business programs may also be ineligible. AppleCare+ is not expected to be part of the monthly lease and customers may need to buy coverage separately.
Could iPhone 18 Models Be Included?
The timing of the programme has also raised speculation about when Apple's next products will be released. If the service is launched before the next iPhone generation arrives, customers could use it to buy premium models like the iPhone 18 Pro and iPhone 18 Pro Max.
There is also speculation that Apple's much-anticipated foldable iPhone might eventually be part of the programme, but it's not clear which models are eligible for the leasing option.
For now, the Apple Upgrade programme is only going to be available in the US. Apple has not announced the launch date for India or other foreign markets. So until the company officially confirms the programme, the launch date, pricing and device eligibility should be treated as unconfirmed.
