Opportunity
CNN
Apple has rolled out a new leasing program in the U.S. for iPhones, Macs, and other devices, replacing its iPhone Upgrade Program. The initiative, in partnership with Klarna, offers flexible terms: 12- or 24-month leases for iPhones and Apple Watches, and 24- or 36-month options for Macs and iPads. Monthly payments start at $17.99 for entry-level iPhones. However, the program excludes lower-cost models like the iPhone 16 and MacBook Neo, focusing on higher-end devices.
This launch comes as consumers hold onto devices longer - an average of 22 months for phones - and as rising prices make outright purchases less appealing. By framing its products as subscription-like services, Apple aims to maintain demand for its premium offerings, even as it raises prices on some models.
Investment implication: Apple's leasing model could shift its revenue mix toward more predictable, recurring income while fostering customer retention. For you, this highlights a growing trend in consumer tech toward subscription-based pricing, which could reshape competitive dynamics and influence long-term valuation strategies.