Apple may soon let you lease an iPhone like a car with its upcoming Upgrade plan: What we know
Follow UsApple Upgrade is tipped to launch on July 28 in the US with Klarna as its financing partner.
The programme will reportedly replace Apple's existing iPhone Upgrade Program and standard financing for new customers.
Entry-level devices like the iPhone 16, base iPad, Apple Watch SE and MacBook Neo are expected to be excluded from the plan.
Apple is reportedly working to introduce a new device leasing programme in the US which may make it easier for customers to upgrade to newer products without paying the full price upfront. As per Bloomberg, the company is said to introduce a subscription style service called Apple Upgrade on July 28 giving eligible customers to lease select Apple devices for a fixed period with flexible end of term options.
SurveyThis programme is said to replace Apple’s existing iPhone Upgrade Program and standard financing plans for new customers. Instead of traditional monthly installments, the users would get to lease eligible devices and choose to either keep them, return it or switch to a newer model once the lease period ends.
As per the report, Apple has already partnered with Klarna to finance the programme and applicants will reportedly undergo a soft credit check before approval. The service is expected to be available via both Apple stores online and retail outlets in the US.
Lease terms differ across devices
The report added that iPhones and Apple Watches will be offered under 24-month lease while the Macs and iPads will come with 36-month leasing period. Customers may also have the option to upgrade before the lease expires by forming a new agreement.
However, not every Apple product is said to be included. The entry level devices like iPhone 16, base iPad, Apple Watch SE, and the MacBook Neo are reportedly excluded from the programme.
AppleCare reportedly not included
Unlike the iPhone Upgrade Program, the new Apple Upgrade service is not said to bundle AppleCare protection. The customers will likely have to purchase Apple’s extended warranty separately if they want accidental damage or repair coverage.
The reported launch comes shortly after Apple increased prices for several products, including iPads and Macs, amid rising memory and storage component costs. While iPhone prices have remained unchanged so far, industry watchers expect the upcoming iPhone 18 Pro lineup to see higher pricing later this year.
It must be noted that Apple has not officially introduced the programme and neither the company Klarna has confirmed the reports. These details are only rumoured for the US market and there is no word about global markets including India.
