Apple is introducing a leasing program for iPhones, Macs, iPads and Apple Watches in the United States, partnering with payment platform Klarna. The plan replaces Apple’s iPhone Upgrade Program and offers 12–36 month lease terms designed to lower monthly payments and extend the subscription-style approach to more device categories.
What Apple confirmed about the new leasing program
Apple said the leasing option will be available in the United States starting Tuesday through Apple retail locations, online and in the Apple Store app, in partnership with Klarna. The program covers the current iPhone 17 lineup and iPhone Air, Apple Watch Series 11 and Ultra 3, several Mac models and iPad models; Apple explicitly excluded some lower-cost devices such as the iPhone 16, MacBook Neo, base iPad and Apple Watch SE from eligibility.
Lease terms vary by device class: iPhones and Apple Watches can be leased for 12 or 24 months, while Macs and iPads are offered on 24- or 36-month leases. Apple’s website lists the cheapest iPhone lease option at $17.99 per month; by comparison CNN reports the prior iPhone Upgrade Program started at about $42 per month. Apple’s announcement frames the offer as a way to make higher-priced devices feel more affordable.
How the leasing plan works and what changed
Apple’s lease expands the upgrade-style financing model that was previously limited to the iPhone Upgrade Program to include Macs, iPads and additional iPhone and Watch models. The company is using Klarna to handle the payment arrangements; Apple did not provide further technical details of the financing terms beyond the stated lease durations and product eligibility in the company’s public materials cited by CNN.
The new plan replaces the iPhone Upgrade Program, which allowed consumers to swap iPhones after 12 monthly payments. The updated offering lowers the entry monthly payment on eligible iPhones and extends similar monthly-payment flexibility to more expensive categories such as MacBook and iMac hardware by offering longer lease terms.
Why this matters for consumers and Apple’s upgrade dynamics
Apple’s leasing program reframes device ownership as a subscription-like expense for consumers, a shift analysts quoted by CNN highlight as potentially important for upgrade behaviour. Francisco Jeronimo of IDC told CNN the model helps consumers view an iPhone or Mac as another subscription rather than a one-time big purchase. That framing could influence when and how often users replace devices: Reviews.org data cited by CNN shows the average American now keeps a phone for 22 months.
The lower monthly entry point also directly addresses price sensitivity, which matters as some analysts expect flagship iPhone prices to climb. CNN reports Apple raised prices on various devices last month because of a memory shortage tied to increased demand from data centres, and Mike Howard of TechInsights was quoted saying the market should “start thinking about a $1,500 iPhone.” Leasing reduces the upfront barrier to those higher-priced devices.
Context and implications for Apple’s business strategy
By broadening the upgrade-style financing beyond iPhones, Apple is extending an existing sales mechanism to higher-margin, higher-ticket products. The move coincides with Apple’s usual product cycle: CNN notes the leasing program debuts ahead of Apple’s expected September iPhone launch, which Bloomberg has reported may include the company’s first foldable iPhone.
Expanding financing options could help Apple sustain upgrade rates if device prices continue to rise. At the same time, the program excludes several lower-cost models, which signals Apple is targeting leasing toward mid-to-premium devices rather than entry-level hardware. Apple’s reliance on Klarna for payments keeps financing administration external to Apple, but CNN’s report does not disclose the underwriting rules, customer credit requirements or resale and return conditions under the leases.
What to watch next
Several details remain unresolved in the public announcement. CNN’s reporting leaves open how trade-ins, returns, damage coverage, and end-of-lease options will be handled for leased devices. It’s also unclear whether the program will expand outside the United States or when Klarna’s underwriting criteria and fees will be published.
Observers should also watch Apple’s September product event and the price points for new iPhone models. CNN cites Bloomberg reporting that Apple may introduce a foldable iPhone at that launch; the inclusion or exclusion of new models from the leasing program will influence customer uptake. Finally, the effect of higher device prices tied to component shortages—such as memory—on upgrade cycles is a closely related variable Jeronimo flagged as critical to watch.
Apple’s leasing rollout extends the company’s financial offerings beyond phones and aims to lower monthly costs, but key operational and geographic details remain unspecified in Apple’s initial announcement.
Source: CNN