Apple teams up with Klarna to launch a lease-to-own program for iPhones, iPads, and Macs
Apple is reportedly partnering with Swedish payments firm Klarna to launch a lease-to-own scheme for its devices, according to a Bloomberg report. The programme, called Apple Upgrade, is due to launch on 28 July and will let customers pay for iPhones, iPads, Macs and Apple Watches over multi-year terms, with the option to keep the device or return it and upgrade at the end of the lease. It comes as Apple faces rising component costs and a broader corporate transition, making the financing option a way to soften the impact of recent price increases for consumers.
Lease terms will run up to 24 months for iPhones and Apple Watches, and up to 36 months for iPads and Macs, with some transactions reportedly incurring an additional fee. The new scheme will replace Apple's existing iPhone Upgrade programme, which will stop accepting new sign-ups. Apple has been contending with a global memory chip shortage, dubbed "RAMageddon" and driven largely by AI industry demand, which has pushed up hardware prices; the launch also comes as new chief executive John Ternus settles in and Apple pursues a legal dispute with OpenAI over alleged trade theft. Apple and Klarna have not yet commented publicly on the report.
- Apple and Klarna reportedly launching lease-to-own scheme "Apple Upgrade" on 28 July
- Covers iPhones, iPads, Macs and Apple Watches; leases up to 24-36 months
- Aims to offset price rises caused by AI-driven memory chip shortages
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters see the Apple-Klarna partnership as a sensible extension of consumer choice, allowing people to spread the cost of increasingly expensive devices into manageable instalments rather than paying a large sum upfront. They argue this widens access to premium technology for those on tighter budgets, mirrors long-established financing norms in other major purchases such as cars and furniture, and gives consumers the flexibility to upgrade more easily once a lease term ends, which some may value as devices become more costly.
The case against
Critics worry that formalising a lease-to-own scheme, especially through a firm associated with the buy-now-pay-later sector, risks normalising debt for non-essential consumer electronics and could encourage people to overextend themselves financially to keep up with the latest devices. They caution that such schemes can obscure the true long-term cost compared with saving up or buying outright, and may be particularly risky for financially vulnerable consumers who could face fees, credit checks, or repossession-style consequences if repayments lapse.