Apple Inc. launched the Apple Upgrade program this month, allowing U.S. customers to lease iPhones, iPads, Macs, and Apple Watches through monthly payments [1, 2].
The move comes as the company seeks to offset rising device prices. Apple said the program provides more flexibility for consumers facing higher costs driven by memory-chip price increases linked to the artificial intelligence boom [1, 3].
Under the new system, customers can opt for monthly payments starting at $24.99 [4]. These leases are structured over a 36-month term [4]. The program is facilitated through a partnership with the financing company Klarna [3].
This initiative expands the company's payment options beyond the traditional ownership model. While previous upgrade programs focused primarily on the iPhone, the new system integrates the broader hardware ecosystem, including tablets and computers, into a single leasing framework [1, 2].
"The Apple Upgrade program gives customers more flexibility and expands upgrade‑style payments beyond the iPhone," an Apple spokesperson said [3].
By shifting toward a leasing model, Apple aims to maintain a consistent hardware refresh cycle for its users. The program allows customers to access the latest technology without the immediate burden of a large upfront purchase price [2, 3].
“Apple launched the Apple Upgrade program that lets customers lease iPhones, iPads, Macs, and Apple Watches”
The transition toward a leasing model reflects a strategic response to the increasing cost of hardware components. As AI capabilities require more expensive memory and processing power, the retail price of flagship devices may exceed the immediate budget of many consumers. By partnering with Klarna to offer long-term leases, Apple is pivoting toward a 'hardware-as-a-service' model to ensure customer retention and steady recurring revenue while keeping its ecosystem updated.
