Apple Planning to Launch a New Upgrade Leasing Program Next Week

According to reportsApple plans to introduce its new Apple Upgrade leasing plan in the United States next week. The program aims to spread the cost of eligible devices into monthly installments. It may also act as an alternative to the existing iPhone Upgrade Plan offered by Apple.

Apple is expected to launch the Apple Upgrade Program in partnership with Klarna. Customers will reportedly need to complete a soft credit check before enrolling. According to reports, the Apple Upgrade Program is expected to work just like a subscription. Customers have the option of paying for their device in full before the end of their lease period.

Customers can also retain the device after paying off the entire amount. If the customer is no longer interested in the device, they can give it back when the lease expires. The customer gets more freedom compared to a one-time purchase. Apple is likely to offer various lease deals depending on the device. iPhones and Apple Watch can be leased for 24 months. Macs and iPads will have a 36-month lease.

Eligible Devices, Exclusions, and Changes for Buyers

The plan is said to cover eligible iPhones, iPads, Macs, and Apple Watches. But not all Apple products are set to be covered by the new lease plan. This is because some products will be excluded from the list, among them the iPhone 16, Apple Watch SE, budget iPad, and MacBook Neo. Apple also plans to exclude business and education purchases.

Unlike the current iPhone Upgrade Program, the new service is not expected to offer AppleCare coverage. Reports also suggest Apple will stop accepting new customers for the existing iPhone Upgrade Program after Apple Upgrade launches. The new leasing option may make premium Apple devices easier to afford. Customers can spread payments over several months instead of paying the full price upfront.