Apple Partners with Klarna to Launch Lease-to-Own Program for iPhones, iPads, and Macs
Apple is reportedly teaming up with payment processor Klarna to introduce a new lease-to-own program called 'Apple Upgrade,' allowing consumers to pay for devices over multi-year periods.
According to Bloomberg, Apple will launch the "Apple Upgrade" program next Tuesday, July 28. The program will enable customers to pay for iPhones, iPads, Macs, and Apple Watches over extended periods. Leases for iPhones and Apple Watches will be up to 24 months, while Mac and iPad leases will extend up to 36 months. At the end of the lease, users can either keep or return the device, and upgrades to newer models will be available.
The report notes that in some cases, additional fees may apply. Apple already offers a similar program called "iPhone Upgrade," but it will stop accepting new sign-ups to focus on the broader "Apple Upgrade" program.
This leasing initiative comes as Apple faces supply chain challenges due to a memory chip shortage known as "RAMageddon." The shortage is largely driven by the AI industry consuming vast amounts of memory. To address these issues, Apple recently announced price increases, and "Apple Upgrade" appears designed to make those higher prices more palatable.
TechCrunch reached out to Apple and Klarna for comment. The new program seems like a strategic move for Apple amid a busy transition period. New CEO John Ternus is taking over, and the company is also engaged in a legal battle with AI startup OpenAI over alleged trade secret theft. The program aims to boost sales and maintain momentum.
