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.