Apple has unveiled an innovative leasing programme in the United States, allowing consumers to lease iPhones and other devices starting from just $17.99 per month. Dubbed the Apple Upgrade programme, this initiative offers a range of products including iPhones, iPads, Macs, and Apple Watches, with monthly payments made more manageable through the collaboration with Klarna.
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In a recent announcement, Apple replaced its previous iPhone Upgrade Programme with this new leasing model, aimed at providing flexibility for customers looking to acquire the latest technology. Klarna, a prominent financial services company, is facilitating the programme by offering buy-now-pay-later services, which enable customers to split their payments into more digestible amounts over a chosen timeframe.
The monthly leasing rates vary according to the specific device. For example, while iPhones can be secured for as little as $17.99 each month, Apple Watches start at an attractive rate of $11.99. Leasing durations can range from 12 to 36 months, depending on the customer’s choice of device.
“The Apple Upgrade programme allows you to lease a new device with affordable payments and terms that suit your financial situation. When your lease expires, you can easily upgrade to a new model and return your current device,” said Apple in a statement regarding the new offering.
To take part in this leasing programme, potential customers must undergo a soft credit check, which, notably, has no impact on their credit scores. Upon approval, customers will enjoy seamless access to even more purchasing options through both online and physical retail channels, with products available for home delivery or scheduled in-store pick-up.
However, the introduction of the Apple Upgrade programme signals the end of the previously available iPhone Upgrade Programme and iPhone Payments service in the US. According to Apple’s release, existing customers enrolled in the iPhone Upgrade Programme will be given various options: they can lease a new device through the new programme, finance their purchases using Apple Card Monthly Installments, buy the product outright, or select carrier financing.
In light of rising costs associated with smart technology, including memory and storage chips—driven by increasing demand for artificial intelligence applications—Apple’s new leasing option offers an economical solution for those looking to stay updated with the latest devices. A report by The New York Times emphasized that the ongoing advances in A.I. are contributing to a surge in component costs, making leasing a more attractive alternative than outright purchases.
In June, Apple responded to these cost pressures by raising prices on certain products, with increases varying between £100 and £300 for MacBooks and iPads. This decision had a significant impact, resulting in a 6% drop in the company’s stock value shortly thereafter, as reported by CNBC.
The Apple Upgrade programme also offers value-added services, including Apple’s Personal Setup, which assists customers in getting their new devices up and running smoothly. Additionally, the company provides free “Today at Apple” sessions, designed to educate users and enhance their understanding of the features and functionalities of their devices.
As technology continues to evolve and become a central part of everyday life, Apple aims to make its products accessible to a broader audience through this new pricing initiative. By balancing affordability with the latest technology, the Apple Upgrade programme represents a significant shift in how consumers can engage with one of the world’s leading tech companies.