Critical
BusinessToday Malaysia
Apple will launch its Apple Upgrade leasing program in the U.S. on July 28, allowing customers to lease iPhones, iPads, Macs, and Apple Watches. The program, supported by Klarna Group, offers flexible payment options, mid-lease upgrades, and the option to keep devices after the term ends. Monthly payments are expected to be lower than current financing options, but AppleCare is not included. Entry-level devices and business purchases are excluded. The program will replace the iPhone Upgrade Program and standard financing plans.
This rollout follows recent price increases for iPads and MacBooks, as Apple adjusts to rising component costs. By transitioning to a subscription model, Apple aims to stabilize revenue streams while maintaining its premium brand positioning.
Investment implication: Apple Upgrade could drive steady hardware revenue and improve customer retention in mature markets like the U.S. However, it introduces financial risks tied to lease defaults and device depreciation. Tracking early adoption and Klarna’s financial role will be essential.