Apple Introduces Leasing Option for Devices
If you don’t have the cash right now, that’s okay.
Starting July 28th, Apple has revealed plans to launch a leasing program called Apple Upgrade, where customers won’t have to pay for products upfront anymore. This initiative will be supported by the buy now, pay later (BNPL) platform, Klarna.
The Apple Upgrade program is set to take over from the iPhone Upgrade Program, offering a broader range of devices and a new pricing model.
Through the Apple Store online, the Apple Store app, and physical Apple Store locations across the U.S., customers can lease popular items such as iPhones, Apple Watches, Macs, and iPads. The leasing terms will vary, with 12- and 24-month options available for iPhones and Apple Watches, and 24- and 36-month options for Macs and iPads.
“At Apple, our customers are at the heart of everything we do,” said Karen Rasmussen, who oversees the online Apple Store. “We are excited that Apple Upgrade provides more flexible payment methods for our valued products,” she added in a recent announcement.
It’s worth noting that while purchasing outright means you own the product, leasing means you don’t outright own it. You simply pay for the use of the product. Once your lease concludes, you can return it, upgrade to a newer version, or choose to buy it with a one-time payment.
This is how it works: Begin by selecting a device, be it an iPhone, iPad, Mac, or Apple Watch. After that, you pick your lease duration.
- iPhone and Apple Watch – 12 or 24 months
- Mac and iPad – 24 or 36 months
Once those choices are made, you’ll be set up for your first monthly payment.
- iPhone: $17.99 per month
- Apple Watch: $11.99 per month
- iPad: $11.99 per month
- Mac: $24.99 per month
After your leasing period, you have a few choices—you can trade in your device, and if eligible, that trade-in can help lower your monthly payments. A soft credit check will be necessary for registration.
No deposit is required at the start. Your first monthly payment will be due 30 days after your device is shipped or picked up. Monthly payments will depend on both the selected device and the duration of the lease.
For instance, the monthly lease payment for an iPhone 17 Pro 256GB, priced at $1,099, would be $31.99 for a 24-month lease or $45.99 for 12 months, before any taxes or credits. Additionally, keep in mind that extra fees may apply if you decide to upgrade early or terminate your lease early.
The new payment model has drawn mixed reactions online, with some customers expressing concern that it could lead to increasing prices.
“I’m not a fan of this. Leasing isn’t mandatory, but I fear if many choose it, Apple might raise the prices since they think everyone is leasing. They might extend leases to 48 months just to keep monthly costs lower. It’s a bit of a slippery slope,” a user noted.
Another skeptical voice added, “Why not just let Apple handle that when they check for any scratches?”
