Apple Device Leasing
Apple and Klarna Launch New Device Leasing Program in U.S. on July 28
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Key Points
1
Apple Upgrade excludes several devices and does not include AppleCare coverage, with ineligible items including the Apple Watch SE, entry-level iPad, iPhone 16 and MacBook Neo, and business/education purchases not eligible.
2
Klarna will be the financing backer for Apple Upgrade, expanding Klarna's role in consumer device financing and enabling the leasing program without Apple directly carrying the credit risk.
3
The collaboration is accompanied by regulatory lobbying disclosures from both Apple and Klarna, highlighting active engagement on fintech, digital markets, privacy, AI, tariffs and App Store legislation.
4
This initiative marks a strategic shift away from Apple’s own in-house hardware subscription plans, with financing handled by a partner rather than Apple directly.
5
Financial market reaction was positive, with shares rising about 9% following Bloomberg’s report of the partnership.
Apple is launching a new device-leasing program called Apple Upgrade on July 28 in the United States, backed by Swedish fintech company Klarna, according to Yahoo Finance. The program covers most iPhones, Macs, iPads, and Apple Watches, offering lower monthly payments than Apple's current financing options.
News of the partnership sent Klarna shares surging about 9%, according to Yahoo Finance. The deal marks a significant shift in how Apple handles consumer financing — handing credit risk and leasing management to a third-party partner rather than running it in-house.
How Apple Upgrade Leasing Terms Actually Work
Apple Upgrade offers 24-month leases for iPhones and Apple Watches. Macs and iPads come with 36-month leases, according to Yahoo Finance. At the end of the lease, customers can upgrade to a new device, pay off what remains, or simply return the product.
Klarna will fund and manage the leasing plans, meaning Apple does not directly carry the credit risk. Customers will go through a soft credit check to qualify — the kind that does not hurt your credit score. The program replaces Apple's existing iPhone Upgrade Program and standard financing options, according to GuruFocus.
Several Devices and Buyers Are Left Out
Not every Apple product qualifies. The Apple Watch SE, the entry-level iPad, the iPhone 16, and the MacBook Neo are all excluded from the program, according to Yahoo Finance. AppleCare coverage is also not bundled in — customers would need to add it separately.
Business and education purchases are not eligible either. Apple has not publicly explained why these specific products and buyers were carved out, but the exclusions suggest the program is aimed squarely at mainstream consumer upgrades rather than bulk or budget buyers.
Klarna's Big Bet on Apple's Ecosystem
For Klarna, the Apple deal is a major expansion into device financing. The Swedish fintech company is best known for buy-now-pay-later shopping tools. Landing Apple as a partner puts Klarna at the center of one of the world's most valuable product ecosystems, according to Yahoo Finance.
Both Apple and Klarna have filed regulatory lobbying disclosures tied to the partnership. Those disclosures cover topics including fintech rules, digital markets, privacy, artificial intelligence, tariffs, and App Store legislation, according to Yahoo Finance. That breadth signals both companies are actively managing the legal and political landscape around the deal.
Why Apple Is Moving Away From In-House Financing
Apple had previously explored building its own hardware subscription service. Instead, it chose to outsource that role to Klarna. The move lets Apple offer flexible payment options without putting its own balance sheet on the line, according to GuruFocus.
The launch also comes after Apple raised prices on several products. Offering lower monthly lease payments through Apple Upgrade could make those higher-priced devices feel more affordable to everyday buyers. It fits Apple's broader push to grow services revenue and keep customers locked into its ecosystem long-term.
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