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Apple may unveil a new device subscription service as soon as next week
Apple is reportedly preparing to launch a device subscription service called Apple Upgrade, potentially as soon as 28 July, according to a Bloomberg report. The scheme would let customers pay monthly for most iPhone, Mac, iPad and Apple Watch models rather than buying outright, reviving an idea the company had previously shelved in 2024 over financial oversight concerns. This time, Apple is said to be partnering with buy-now-pay-later firm Klarna, which would take on the financial risk rather than Apple itself.
Under the reported terms, customers would face a soft credit check and could upgrade to newer devices, keep their device after the lease ends, return it, or pay it off early. Leases would reportedly run for 24 months on iPhones and Apple Watches, and 36 months on iPads and Macs, though AppleCare would not be included and some models, such as the iPhone 16 and MacBook Neo, would be excluded. The service is expected to launch in the US only initially, and comes shortly after Apple raised prices on many products by at least $100, with further iPhone price rises anticipated at this year's launch.
In short
- Apple may launch a device subscription service, "Apple Upgrade", around 28 July.
- Klarna would reportedly handle financing, taking on the credit risk.
- Move follows recent Apple price hikes; US-only at launch, more countries unclear.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
This service substantially improves accessibility to premium Apple devices by eliminating large upfront costs, enabling people to own iPhones, Macs and iPads through manageable monthly payments. The flexibility to upgrade, keep, return or pay off early accommodates diverse financial situations and needs, whilst transferring lending risk to Klarna protects consumers from Apple's credit practices. The model also encourages device refurbishment and circulation, supporting environmental sustainability and resource efficiency.
The case against
Over 24 to 36 months, monthly lease payments typically exceed the outright purchase price, meaning this arrangement prioritises Apple's recurring revenue over genuine consumer savings—it creates permanent subscription obligations rather than eventual ownership and financial freedom. Klarna's soft credit checks risk encouraging debt accumulation among those least able to afford it, and by discouraging device repair and longevity, the leasing model generates unnecessary e-waste and environmental harm whilst concentrating financial benefit among corporate intermediaries.
Explained simply
Apple has reportedly designed a new way for customers to access its products. Rather than paying hundreds or thousands of pounds upfront for an iPhone, iPad, Mac or Apple Watch, customers would pay monthly instead, similar to how many people subscribe to mobile phone contracts. This would let people upgrade to newer models more frequently without committing to a large one-off purchase.
The scheme, called Apple Upgrade, would work with the financial services company Klarna, known for allowing shoppers to spread payments across purchases. Under the reported terms, customers would enter into leases lasting between 24 and 36 months depending on the device, with the option to upgrade, keep the device after the lease ends, return it, or pay it off early. Klarna would handle the financial risk rather than Apple itself, which is why the plan is moving forward after Apple shelved a similar idea two years ago over credit concerns.
The timing of this launch is significant because Apple has recently raised prices across many of its products. Device subscriptions could make expensive technology more accessible to more people despite higher prices, whilst also potentially encouraging customers to upgrade more regularly over time.