Apple has introduced a new financing programme in partnership with Klarna, allowing customers to lease select devices through affordable monthly instalments. The initiative, available in the United States via Apple retail stores, the Apple website, and the Apple Store app, aims to make premium products more accessible as global gadget prices rise.
Eligible Devices Under the New Leasing Programme
Customers can spread the cost of several flagship products over one to three years. Eligible devices include the iPhone 17 lineup, iPhone Air, Apple Watch Series 11, Apple Watch Ultra 3, MacBook Air, MacBook Pro, iMac, Mac Studio, iPad Air, iPad Pro, and iPad Mini. iPhones and Apple Watches are available for 12- or 24-month leases, while Macs and iPads can be financed over 24 or 36 months.
However, Apple excluded more affordable products such as the iPhone 16, MacBook Neo, standard iPad, and Apple Watch SE from the programme.
Lower Monthly Costs Replace Previous Upgrade Programme
The new offering replaces Apple's long-running iPhone Upgrade Programme, which let customers exchange iPhones after 12 monthly payments. According to Apple, the cheapest iPhone lease now starts at $17.99 per month, a significant reduction from the previous programme's typical $42 monthly start. The move is expected to attract consumers preferring predictable payments over upfront costs.
Industry Experts Weigh In on Consumer Trends
Industry analysts attribute the shift to changing consumer behaviour. Francisco Jeronimo, an analyst at International Data Corporation (IDC), said the leasing programme reflects a growing trend of delayed smartphone upgrades. A survey by Reviews.org found that the average American now keeps a smartphone for about 22 months before replacing it.
Mike Howard, Vice President of Memory Coverage at TechInsights, told CNN that consumers should prepare for flagship iPhones potentially costing around $1,500, compared with current $1,000–$1,200 prices. Apple recently increased prices on several Mac and iPad models, citing a global memory shortage driven by data centre demand.
Strategic Timing Ahead of Product Launches
According to a report by Vanguard, Apple's leasing programme arrives weeks before its anticipated September product event, where the iPhone 18 series and possibly a foldable iPhone are expected. By lowering the barrier to ownership through monthly payments, Apple aims to strengthen customer loyalty and encourage more frequent upgrades amidst rising hardware costs.
