Apple Inc. has partnered with Klarna to launch a revamped Upgrade Program that allows customers to lease iPhones and other devices for monthly fees [1].
This shift toward a leasing model reduces the upfront cost of owning high-end hardware. It encourages a cycle of yearly upgrades, ensuring a steady stream of users on the latest software and hardware versions while securing recurring revenue for Apple.
The program, which first rolled out in July 2026 [1], provides a flexible alternative to traditional purchasing. Under the terms of the agreement, users can upgrade their device after making 12 monthly payments [2].
Pricing varies by device. The lease for an iPhone 15 starts at $11.99 per month [1], though some reports indicate a starting price of $15 per month. Other available options include the iPad for $19.99 per month, and the MacBook Air for $39.99 per month [3].
Each lease includes AppleCare+, a protection plan that covers accidental damage and technical support. This bundling is designed to protect the value of the hardware throughout the lease term.
While the program initially launched in the U.S. [1], some reports suggest a broader rollout beginning in Europe and Asia. Apple has not detailed the specific timeline for these international expansions.
"Apple has teamed up with Klarna to revamp its Upgrade Program, letting customers lease an iPhone for as little as $11.99 a month," ZDNet staff said [1].
The partnership with Klarna integrates a third-party financial service to handle the leasing infrastructure. This allows Apple to offer consumer financing without managing the full credit risk associated with traditional loans.
“The program costs $11.99 per month for the iPhone 15, $19.99 for the iPad, and $39.99 for a MacBook Air.”
The transition toward 'Hardware-as-a-Service' reflects a broader industry trend where companies prioritize lifetime customer value over one-time sales. By lowering the barrier to entry and bundling insurance, Apple creates a locked-in ecosystem that makes it financially and technically difficult for users to switch to competitors every year.
