Apple has officially entered the device leasing market through a new partnership with Klarna, giving U.S. customers a new way to access the latest iPhones, Macs, iPads, and Apple Watches without purchasing them outright.
The new Apple Upgrade program represents a major shift in Apple’s financing strategy, replacing traditional installment plans with a lease model that offers lower monthly payments and flexible upgrade options.
What Is Apple’s New Device Leasing Program?
Under the Apple Upgrade program, eligible customers can lease select Apple products for a fixed term rather than financing them to own immediately.
Available devices include:
- iPhone
- iPad
- Mac
- Apple Watch
Customers can choose lease lengths based on the product category:
- iPhone and Apple Watch: 12- or 24-month leases
- Mac and iPad: 24- or 36-month leases
At the end of the lease, customers have several options:
- Return the device
- Purchase the device by paying the remaining balance
- Upgrade to a newer Apple device
The program is available through Apple Stores, the Apple Store app, and Apple’s website across the United States.
Why Apple Is Partnering With Klarna
Klarna has become one of the world’s leading Buy Now, Pay Later (BNPL) providers, and its partnership with Apple expands its role beyond short-term financing into long-term consumer technology leasing.
According to Apple, Klarna will manage lease approvals and payment processing, while customers benefit from:
- Soft credit checks that do not impact credit scores
- Monthly payment options
- Trade-in credits that can lower lease costs
- A streamlined digital application process
The move allows Apple to make premium devices more accessible while encouraging customers to upgrade more frequently.
Apple Card Benefits Continue
Customers using the Apple Card to make lease payments will continue to receive:
- 3% Daily Cash on eligible lease payments
However, one notable difference from the previous iPhone Upgrade Program is that AppleCare+ is no longer automatically included with the lease.
Customers who want device protection will need to purchase AppleCare+ separately.
What Happens If You Miss a Payment?
One concern following the announcement was whether Apple would remotely disable leased devices if customers failed to make payments.
Apple has clarified that it will not remotely lock or restrict devices solely because of missed lease payments.
However, if a customer becomes seriously delinquent—such as missing three consecutive monthly payments—Klarna may terminate the lease agreement and require payment of the remaining balance under the terms of the contract.
How Apple’s Leasing Model Differs From Financing
Traditional financing allows customers to own their device after completing installment payments.
Leasing works differently.
Instead of building ownership immediately, customers essentially rent the device for the agreed lease term before deciding whether to:
- Keep it
- Return it
- Upgrade to a newer model
This model closely resembles automobile leasing, where customers enjoy lower monthly payments but do not automatically own the asset at the end of the contract.
Why This Could Be a Big Win for Apple
The leasing program could help Apple:
- Increase upgrade frequency among existing customers
- Lower the barrier to entry for premium devices
- Generate recurring revenue through predictable monthly payments
- Expand customer loyalty within the Apple ecosystem
With smartphone innovation becoming more incremental each year, offering flexible leasing may encourage consumers to upgrade more often than they would under traditional ownership.
Final Thoughts
Apple’s partnership with Klarna marks one of the company’s biggest changes to consumer device financing in years. By introducing a true leasing model, Apple is giving customers another option to access its latest technology while potentially reducing upfront costs.
Whether consumers prefer leasing or traditional ownership will likely depend on how often they upgrade their devices. For users who enjoy having the newest Apple products every year or two, the Apple Upgrade program could become an attractive alternative to buying outright or financing through conventional installment plans.
SEO Title: Apple Partners With Klarna to Launch New Device Leasing Program in the U.S.
Meta Description: Apple has partnered with Klarna to introduce a new device leasing program for iPhones, Macs, iPads, and Apple Watches. Learn how the Apple Upgrade program works, lease terms, upgrade options, and key benefits.
Suggested URL Slug: apple-klarna-device-leasing-program