Apple Introduces New Device Leasing Program
Apple is set to launch a new leasing program named “Apple Upgrade” for its devices, including iPhones, Macs, iPads, and Apple Watches. According to well-known Apple expert Mark Gurman, this much-anticipated program will become available starting Tuesday, July 28. This innovative approach allows users to access the latest Apple technology without the hefty upfront costs associated with purchasing devices outright.
How the Leasing Program Works
The mechanics behind the “Apple Upgrade” program resemble traditional auto leasing or Apple’s existing iPhone Upgrade Program. Users will select a device, such as an iPhone, with its cost divided into 24 monthly payments. If payments are made on time, customers will have the option to switch to a newer model after 12 months. Additionally, at the end of the leasing period, they can either keep the device or return it. It’s important to note that an additional fee may apply, and a soft credit check will be required before signing up.
In Germany, payments for the program will be processed through Openbank Pay, making it straightforward for customers to manage their monthly charges.
Leasing Terms and Device Availability
The leasing term for iPhones and Apple Watches will be 24 months, while Macs and iPads will have a longer 36-month term. However, it’s still uncertain whether users will have the same upgrade options for Macs and iPads as they do for iPhones after 12 payments. This limitation makes more sense for mobile devices than for desktop or tablet options.
One notable limitation is that not all Apple devices will be available under the “Apple Upgrade” program. According to Gurman, devices like the Apple Watch SE, iPhone 16, standard iPad, and MacBook Neo will not be included. The availability of newer devices, such as the iPhone 17, is yet to be determined.
Exclusions and Special Features of the Program
One significant difference between the new leasing option and traditional purchases is that Apple Care will not be mandatory for “Apple Upgrade” leases. However, businesses and educational institutions will not be eligible for this program.
The financial support for this program will come from Klarna, a company known for its “buy now, pay later” solutions. Interestingly, Gurman mentioned four years ago that Apple had considered launching its own subscription model for devices, but this plan was reportedly abandoned in 2024.
Recent Price Increases and Future Projections
Interestingly, the launch of “Apple Upgrade” comes just one month after substantial price hikes for Macs and iPads. While iPhones and Apple Watches were not affected, expected new models in the fall are likely to be more expensive, making a leasing option particularly attractive.
Although Gurman has not confirmed plans for international expansion, it seems a global rollout may be on the horizon. Apple appears to be shifting its partnership from Openbank Pay to Klarna. Notably, some code unearthed by 9to5Mac in the beta version of iOS 27 indicates that the leasing program will have functionalities to restrict device usage in case of missed payments.
Implications for Leasing Users
Leased iPhones may include a feature called “App Managed Features,” allowing the lender to limit the device’s functionality for late payers. Such measures would restrict access to most apps and services, leaving only essential features such as the Phone app, App Store, Settings, Wallet, and a few others until the payment issue is resolved. Similar restrictions are expected for Macs.
With the launch of “Apple Upgrade,” Apple is opening up new avenues for consumers, making it easier to adopt their latest technology without the burden of outright costs. As we await further details, including international availability and device restrictions, this program could revolutionize how we interact with Apple products.
