Apple’s new device leasing plan, powered by Klarna, may double upgrade frequency and boost sales for both companies.
Apple launched its Apple Upgrade leasing program, allowing customers to pay monthly for devices starting at $17.99. The program covers iPhones, Apple Watches, Macs, and iPads, with lease terms ranging from 12 to 36 months.
Under the previous upgrade model, customers typically held devices for 3.6 years. The new leasing structure could cut that cycle in half, increasing upgrade frequency and potentially driving higher sales volumes. Klarna, Apple’s leasing partner, will finance the program, owning devices during the lease term.
Klarna will pay Apple upfront for devices, carrying the receivables while customers choose to upgrade, return, or purchase devices at the end of the lease. The partnership positions Klarna as a key beneficiary of Apple’s shift toward flexible payment options.