Apple Launches Klarna-backed Upgrade Leasing

Apple plans to launch a Klarna-backed device-leasing program, Apple Upgrade, on July 28 to replace the existing iPhone Upgrade Program and standard financing, covering most iPhone, Mac, iPad, and Apple Watch models. It will operate as a 24- to 36-month BNPL-style lease, with options to upgrade, pay off early, or return at lease end, and it will include soft credit checks with some extra fees for certain actions. Unlike the prior program, Apple Upgrade will not include AppleCare, and several lower-end models (such as the Apple Watch SE, base iPad, iPhone 16, and MacBook Neo) may be excluded or limited. The rollout is expected to begin in the U.S. at retail and online, and may displace sign-ups for the current iPhone Upgrade Program. Klarna’s involvement strengthens its U.S. merchant reach and consumer financing footprint, with analysts noting potential upside for Klarna and for partnerships. Apple’s timing aligns with broader price increases and a shift toward monthly payments to ease upfront costs for customers.