Apple Introduces Leasing Option for iPhones

Apple has announced that U.S. customers will soon have the ability to lease their iPhones for up to two years, thanks to a new collaboration with Klarna, a “buy now, pay later” service.

Last month, Apple raised the prices of iPads and Macs by at least $100, with some high-end models increasing by over $1,000. This decision was influenced by ongoing global shortages of chips and memory. Analysts are forecasting a similar price hike for iPhones, so this leasing option might redirect customers’ focus towards manageable monthly payments instead of high purchase costs.

According to a press release, customers can lease iPhones and Apple Watches for either 12 or 24 months, while Macs and iPads will be available for lease for 24 or 36 months.

Klarna, which began operating in the U.S. in 2015, allows shoppers to make online and in-store purchases through flexible payment plans.

The monthly rental fees are set to start at $17.99 for iPhones, $11.99 for Apple Watches, and $24.99 for Macs. One interesting detail is that Klarna won’t charge late fees; however, a lease could be terminated after three missed payments. There is no requirement for a deposit from applicants.

“At Apple, we prioritize our customers, and we’re thrilled that Apple Upgrade will offer more flexible payment options for products they cherish, both online and in-store,” remarked Karen Rasmussen, vice president of Apple’s online Apple Store.

Moreover, customers who trade in qualifying devices while signing up for Apple Upgrade can lower their monthly payments. They can even earn 3% cash back daily when using Apple Card, according to the company.

Nabila Popal, senior research director at IDC, mentioned, “Most Apple customers, particularly in the U.S. and other developed markets, tend to purchase their devices through installment plans or trade-ins. We can expect increasingly competitive offers.”