Apple is preparing a lease-style buying program for many of its best-known devices, according to Bloomberg’s Mark Gurman, a move that would change how customers pay for iPhones, Macs, iPads and Apple Watches at a time when Apple hardware has been getting more expensive.
Gurman reports that the program, called Apple Upgrade, is scheduled to start on July 28. It would replace Apple’s existing iPhone Upgrade Program and the company’s standard financing option for new iPhones, according to Bloomberg. The new setup would extend the upgrade pitch beyond phones to most new purchases across several Apple product lines.
The mechanics, as reported, look closer to a car lease than a normal installment plan. Customers would sign up after a soft credit check. Klarna would provide the financial backing. At the end of the lease, buyers could either move to a new device early, keep the hardware, or return it, according to Gurman.
The terms would vary by product category. Bloomberg says iPhones and Apple Watches would use 24-month leases, while iPads and Macs would use 36-month leases. That longer Mac and iPad window tracks with how people tend to hold on to laptops and tablets, although Apple’s reported program still puts a timer on devices that many customers currently keep until the battery, keyboard or software support gives them a reason to stop.
Which Apple devices reportedly qualify
The program would cover most new iPhone, Mac, iPad and Apple Watch purchases, Bloomberg reports, but Apple would reportedly leave some cheaper hardware out. The base iPad, iPhone 16, Apple Watch SE and MacBook Neo would not be eligible, according to Gurman.
That exclusion matters because lease programs can make expensive devices look less painful by turning the price into a monthly number. Leaving budget devices out would steer the program toward customers already looking at higher-end hardware, where Apple has more room to turn an upgrade cycle into a recurring payment habit.
Apple’s current iPhone Upgrade Program includes AppleCare. Bloomberg says Apple Upgrade would not include an AppleCare subscription. That means customers would have to price device protection separately if they want it, and The Verge has reported that AppleCare is also becoming more expensive.
The timing is not subtle. The Verge reported last month that Apple raised prices across nearly all of its products, with the iPhone left out of that particular round. The next potential pressure point is the iPhone 18 Pro line, which is expected later this year and could push Apple’s phone pricing higher, according to the report.
Apple has not announced Apple Upgrade. For now, this is a Bloomberg report about a program that would reshape Apple’s retail financing, backed by Klarna and built around leases rather than the cleaner ownership story Apple usually sells. Customers should read the actual terms if and when Apple publishes them, because the difference between “upgrade” and “pay forever” usually lives in the fine print.
This story draws on original reporting from The Verge.
