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.