Apple Set to Offer Device Leasing to Drive Revenue

Apple is preparing to overhaul its retail strategy with the planned launch of a new device leasing subscription program in the US. The Apple Upgrade service is reportedly scheduled to launch on 28 July.

The program will initially be available across both Apple’s physical retail stores and online platforms in the US. The subscription initiative will cover the majority of Apple’s device portfolio, including most Mac, iPad, iPhone, and Apple Watch models. Leases for iPhones and Apple Watches would run on 24-month terms, while Mac and iPad plans are to extend over 36 months. Customers will need to undergo a credit check to qualify for approval.

Functioning similarly to an automotive lease, Apple Upgrade will grant subscribers the flexibility to pay off their hardware early, switch to a newer model before their term ends, return the device, or retain it after the leasing period concludes. Certain early-exit transactions will incur additional fees. By partnering with Klarna rather than managing financing internally, Apple gains the ability to promote lower monthly payments without assuming direct balance-sheet liability.

Apple plans to end new enrolments in its existing iPhone Upgrade Program and standard financing options. Unlike the current iPhone payment scheme, Apple Upgrade will not include AppleCare coverage. Additionally, select entry-level devices, such as the iPhone 16, MacBook Neo, base-level iPad, and Apple Watch SE, will be excluded from the program, along with commercial business and education purchases.