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Apple is set to launch a new subscription-based device leasing program, Apple Upgrade, in the United States on July 28, allowing customers to lease and upgrade iPhones, Macs, iPads and Apple Watches under a single financing model, according to a Bloomberg News report.
The report said the new program will replace Apple's existing iPhone Upgrade Program and standard financing plans for new customers as the company looks to simplify device ownership and encourage more frequent hardware upgrades.
Under the Apple Upgrade program, customers will be able to make monthly payments, pay off devices ahead of schedule, upgrade to newer models before the lease term ends or retain the device after completing the payment period.
Apple is partnering with Swedish fintech company Klarna as the financial backer for the program, which will be available through both Apple's retail stores and online channels, the report said.
According to Bloomberg, Apple plans to position the service as a lower-cost alternative to its current financing options. Unlike the existing iPhone Upgrade Program, however, the new offering will not include AppleCare coverage.
The report said the program will support most iPhone, Mac, iPad and Apple Watch models, although certain products—including the Apple Watch SE, entry-level iPad, iPhone 16 and MacBook Neo—will not be eligible. Business and education purchases are also expected to be excluded.
The launch comes as Apple faces rising component costs, particularly for memory and storage chips, driven by growing demand from AI data centre deployments. While the company has increased prices on several product categories, including iPads and MacBooks, it has so far kept iPhone prices unchanged.
If rolled out successfully, Apple Upgrade could strengthen the company's subscription-based services strategy while making it easier for consumers to upgrade devices more frequently without paying the full upfront cost. According to the report, Apple has not officially announced the program.
The report said the new program will replace Apple's existing iPhone Upgrade Program and standard financing plans for new customers as the company looks to simplify device ownership and encourage more frequent hardware upgrades.
Under the Apple Upgrade program, customers will be able to make monthly payments, pay off devices ahead of schedule, upgrade to newer models before the lease term ends or retain the device after completing the payment period.
Apple is partnering with Swedish fintech company Klarna as the financial backer for the program, which will be available through both Apple's retail stores and online channels, the report said.
According to Bloomberg, Apple plans to position the service as a lower-cost alternative to its current financing options. Unlike the existing iPhone Upgrade Program, however, the new offering will not include AppleCare coverage.
The report said the program will support most iPhone, Mac, iPad and Apple Watch models, although certain products—including the Apple Watch SE, entry-level iPad, iPhone 16 and MacBook Neo—will not be eligible. Business and education purchases are also expected to be excluded.
The launch comes as Apple faces rising component costs, particularly for memory and storage chips, driven by growing demand from AI data centre deployments. While the company has increased prices on several product categories, including iPads and MacBooks, it has so far kept iPhone prices unchanged.
If rolled out successfully, Apple Upgrade could strengthen the company's subscription-based services strategy while making it easier for consumers to upgrade devices more frequently without paying the full upfront cost. According to the report, Apple has not officially announced the program.
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