Apple launched the Apple Upgrade leasing program on July 28 [2], allowing U.S. customers to lease iPhones, iPads, Macs, and Apple Watches.
This shift toward a subscription-like model comes as hardware costs rise. By lowering the immediate financial barrier to entry, Apple can maintain its user base despite the increasing price of high-end electronics.
Under the new system, customers can lease devices rather than purchasing them in full [1]. For example, some iPhone lease options may start as low as $18 per month [5]. The program provides users with the flexibility to return the device, purchase it at the end of the term, or upgrade to a newer model [6].
Apple said the program is intended to provide customers with more flexibility and expand upgrade-style payment options [1]. The company also said that the program helps offset rising device prices [1]. These price increases are driven by higher memory-chip costs linked to the current AI boom [1].
The program covers a wide range of the company's hardware ecosystem, including the iPhone, iPad, Mac, and Apple Watch [3]. This allows users to maintain a current suite of devices across multiple categories without paying the full retail price upfront.
Apple is partnering with Klarna to facilitate these leasing arrangements [3]. This partnership enables the company to offer a structured payment plan that differs from traditional credit-based financing or the previous iPhone Upgrade Program [3].
“Apple launched the Apple Upgrade leasing program on July 28”
Apple's move into hardware leasing reflects a broader industry trend toward 'everything-as-a-service.' By decoupling the use of a device from its ownership, Apple can create a more predictable, recurring revenue stream while ensuring customers upgrade their hardware more frequently. This strategy specifically addresses the economic pressure of AI-driven hardware costs, which make high-end chips more expensive to produce and purchase.
