Apple is reportedly preparing to launch a new device leasing program that would reduce the upfront cost of buying iPhones, iPads, Macs, and Apple Watches. The program, called Apple Upgrade, is backed by Klarna and will be available both online and in physical Apple stores on July 28, Bloomberg reports.
The program is designed to operate like a subscription, in which iPhones and Apple Watches will have a 24-month leasing term, while Macs and iPads will have a 36-month term. During the leasing period, customers can pay off the device to keep it or switch to a new model and upgrade. If neither works out, they can also return the device at the end of the term.
Some of these transactions might include an additional fee, Bloomberg says, adding that those signing up for the program will have to go through a soft credit check.
Apple already has a similar program for iPhone purchases, called iPhone Upgrade. Once the broader Apple Upgrade scheme rolls out, the company will discontinue the iPhone Upgrade program, Bloomberg notes.
The two programs have one major difference: AppleCare. While the iPhone Upgrade program includes Apple’s device protection, the rumored, upcoming Apple Upgrade program will not.
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Another major caveat is the lack of support for all devices and purchases. Apple Upgrade reportedly won’t support several base models, including the Apple Watch SE, entry-level iPad, iPhone 16, and the recently launched MacBook Neo. It won’t cover Education and Business purchases, either.
The snub for entry-level models could discourage those looking forward to this program after Apple’s recent price hikes, which raised the prices of the MacBook Neo and the entry-level iPad by $100. iPhones were spared from Apple’s June price hikes, but they may see a hike alongside new models in September, Bloomberg notes.
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Jibin is a tech news writer based out of Ahmedabad, India. Previously, he served as the editor of iGeeksBlog and is a self-proclaimed tech enthusiast who loves breaking down complex information for a broader audience.
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