Apple is reportedly partnering with deferred payment processor Klarna to launch a new leasing program for its devices.
Bloomberg was mentioned Tuesday that the program – called Apple Upgrade – is due to go live next Tuesday, July 28. It will allow consumers to pay for their purchases over several years, including iPhones, iPads, Macs and Apple Watches.
Bloomberg writes that the lease term for iPhones and Apple Watches will be up to 24 months, while leases for Macs and iPads will be up to 36 months. Devices can either be kept or returned at the end of the lease period, and upgrades to new devices will also be available (hence the name of the program). The report vaguely notes that, in some cases, “transactions will incur an additional charge.”
Apple already has a similar program called iPhone Upgrade, though the company plans to stop allowing new customer signups to create the broader, more comprehensive Apple Upgrade program, the report said.
A leasing program is an obvious strategy for Apple at this point. The iPhone maker is grappling with supply chain issues caused by “RAMageddon” — an industry-wide shortage of memory chips that is driving up the price of hardware. These shortages are largely due to the AI industry, which eats up so much memory that it doesn’t leave much for the rest of us.
To address these issues, Apple recently announced that it would be raising prices, and the Upgrade seems clearly designed to make those increased prices more palatable to consumers.
TechCrunch has reached out to Apple and Klarna for more information.
Overall, the new program seems like a smart move for Apple, which is currently facing a tumultuous transition period. As new CEO John Ternus takes the reins, the company has also entered into a legal battle with AI superstar startup OpenAI — suing the company for alleged trade theft.
In short: The company has its hands full and anything that can boost sales and keep the business moving in the right direction is worth trying.
When you purchase through links in our articles, we may earn a small commission. This does not affect our editorial independence.
