Apple is introducing a new leasing program in partnership with buy-now-pay-later service Klarna, allowing eligible customers to pay for Apple devices through monthly instalments, the tech giant said. was announced on Tuesday. The program is available for iPhone, Apple Watch, Mac and iPad at the Apple Store online, in the Apple Store app and at Apple Store locations in the United States.
Lease prices start at $17.99 per month for iPhone, $11.99 per month for Apple Watch, $24.99 per month for Mac, and $11.99 per month for iPad. Apple Upgrade offers one- and two-year lease options for iPhone and Apple Watch, and two- and three-year options for Mac and iPad.
At the end of the lease period, customers can upgrade to the latest generation of their device, buy their current device for a one-time payment, or return it and exit the program, Apple says.
The launch of the program comes as Apple grapples with supply chain issues related to “RAMageddon,” which refers to an industry-wide shortage of memory chips that is driving up the price of hardware. As a result, Apple recently announced price increases for its Mac and iPad lineups, waiting for the iPhone for now. The new Upgrade program appears to be Apple’s answer to making these higher prices more manageable for consumers.
Customers can manage their rental directly in the Klarna app, where they can view their billing schedule and track remaining payments.
With the launch of the new Upgrade program, Apple is discontinuing its existing US in-house financing and installment programs, which include the iPhone Upgrade Program and iPhone Payments.
The official release follows a report from Bloomberg’s Mark Gurman last week, which revealed that Apple was preparing to introduce a leasing program for its devices.
Apple says that when customers sign up for Apple Upgrade, they can lower their monthly lease payments by trading in their existing device through the Apple Trade In program. They can also earn 3% daily cash back when they use their Apple Card to make their lease payments.
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