Apple will launch a lease-to-own program called Apple Upgrade next week, partnering with Swedish payments company Klarna to let customers pay for devices over multi-year periods rather than buying them outright.
The program, set to launch July 28 according to Bloomberg, covers iPhones, iPads, Macs, and Apple Watches. Lease terms run up to 24 months for iPhones and Apple Watches and up to 36 months for Macs and iPads. At the end of the term, customers can either keep the device or return it and upgrade to a new model.
Apple already operates a similar program called iPhone Upgrade, but Bloomberg reports that the company plans to stop enrolling new customers in the older program in favor of the broader Apple Upgrade scheme.
Why now
The timing is directly tied to the memory-chip shortage that has driven up hardware prices across the industry. The AI boom has consumed vast quantities of DRAM and HBM, squeezing supply for consumer devices and pushing component costs higher. Apple raised Mac and iPad prices by up to $300 in June, and the company’s supply chain has been under pressure for months.
A leasing model lets Apple lower the upfront cost barrier for customers who might balk at higher retail prices. Instead of paying $1,199 for a MacBook Air or $799 for an iPhone, customers pay a monthly fee and have the option to upgrade every two years. Klarna handles the deferred-payment backend, taking on the credit risk in exchange for a share of the transaction.
Notable structure choices
Several details stand out. Bloomberg’s report notes that “in some cases, transactions will incur an additional fee” — suggesting that not every lease will be interest-free. The program also spans product categories unevenly: iPhones get a 24-month term while Macs get 36 months, reflecting the different replacement cycles for each device type.
The partnership with Klarna rather than Apple’s own financial-services arm is also telling. Apple has been building out its payments and lending infrastructure for years through Apple Pay Later and the Apple Card, but partnering with Klarna suggests the company wants to scale the program quickly without adding balance-sheet risk.
Apple Upgrade will be available at both Apple’s online store and its retail locations. The company has not disclosed pricing tiers for individual devices.
Sources: Apple teams up with Klarna to launch a lease-to-own program for iPhones, iPads, and Macs (TechCrunch, July 2026); Apple Upgrade program: lease nearly anything via Klarna (Macworld, July 2026); Apple Upgrade will let users lease iPhones and Macs with Klarna (AppleInsider, July 2026)