Apple is reportedly preparing a major shake-up in the way customers buy its products. The company plans to launch Apple Upgrade, a subscription-style leasing program that lets customers upgrade to newer devices more easily while lowering monthly payments, next week, according to an unconfirmed report.
It’ll apparently be similar to the long-running iPhone Upgrade Program — which is reportedly getting canceled — but with a much broader range of products covered. There’ll be other differences as well.
Lease a MacBook from Apple Upgrade rather than buying one
The idea of leasing Apple products like a subscription isn’t new. Apple’s iPhone Upgrade Program debuted back in 2015, letting customers spread the cost of a handset over 24 months with the option to trade up to a new model after a year.
The reported Apple Upgrade program would take that concept much further by extending it beyond the iPhone to Macs, iPads and Apple Watches under a single, leasing-style service.
The move comes as Apple faces mounting pressure from higher component costs — both memory and processors — which forced the company to increase prices on many Macs and iPads in June. And analysts widely expect this year’s iPhone lineup to cost more as well.
More leaked details on Apple Upgrade
According to a story published Tuesday by Bloomberg, Apple Upgrade will cover most iPhone, Mac, iPad and Apple Watch models. Customers will reportedly be able to make monthly payments, pay off their devices early, upgrade before the lease ends or simply return the device when the term expires.
Some of those options might involve additional fees … of course. And applicants will need to pass a credit check to gain admission to the program.
Lease terms reportedly will vary by product. iPhones and Apple Watches would run for 24 months, while Macs and iPads would extend to 36 months.
A payment plan for premium devices
Bloomberg reports that Apple will exclude several lower-priced products from the program, including Apple Watch SE models, entry-level iPad versions, the iPhone 16, and Apple’s budget-friendly MacBook Neo. Business and education purchases also reportedly won’t qualify.
Apple Upgrade is expected to replace Apple’s existing financing options for new customers, including the current iPhone Upgrade Program and standard installment financing. Unlike the iPhone Upgrade Program, Apple Upgrade reportedly won’t include AppleCare coverage.
An outside partner: Klarna
Rather than offering the financing for device leasing itself, Apple is said to be partnering with “buy now, pay later” company Klarna, which will handle the financial side of Apple Upgrade.
This means Klarna will assume the financial risk while Apple focuses on selling more hardware.
Just note, rumors about similar Apple services surfaced before and then didn’t pan out. But if the Bloomberg report turns out to be legitimate, Apple Upgrade is scheduled to debut on July 28 in the United States, both online and in Apple retail stores.
