Apple to launch device leasing program with Klarna on July 28

Apple ↘ 1.30% is preparing to launch a new device leasing program called "Apple Upgrade" in partnership with Klarna ↘ 1.51%, with a launch date of July 28 in the United States, according to reporting that sent Klarna shares higher on Tuesday.seekingalpha

The program represents one of the most sweeping changes to how Apple sells its hardware, extending leasing options beyond iPhones to cover most Mac, iPad, and Apple Watch models. Under the program, iPhones and Apple Watches will be available on 24-month leases, while Macs and iPads will carry 36-month terms. Customers will have the option to pay off their devices early, upgrade to newer models, or return them at the end of the lease period.

A Replacement for the iPhone Upgrade Program

The launch of Apple Upgrade effectively completes a transition that has been underway since early 2026. Apple discontinued the iPhone Upgrade Program in the United Kingdom in January 2026, replacing it with a "Flexible Finance Account" through Creation, a Belfast-based consumer finance company. In the U.S., Apple stopped accepting new enrollments in the iPhone Upgrade Program in February 2026.electronics.alibaba+3

The original iPhone Upgrade Program, introduced in 2015, offered 24-month installment financing through Citizens Bank with AppleCare+ coverage bundled into monthly payments. Apple Upgrade will not include AppleCare+ coverage, a departure that could add costs for customers who want device protection.cnet+1

Deepening the Apple-Klarna Relationship

The partnership builds on a relationship that has expanded steadily. Klarna became an official Apple reseller in October 2024, launching an "Apple from Klarna" storefront with an "Upgrade Financing" option covering Apple Watch, iPad, and Mac products at monthly payments starting at $7.99. Klarna's buy-now-pay-later options also became available through Apple Pay for in-store purchases with the release of iOS 26 in 2025.klarna+2

Apple had previously attempted to handle consumer lending in-house with Apple Pay Later, which launched in 2023 but was discontinued in mid-2024. The company pivoted to third-party providers including Klarna, Affirm, and Synchrony for installment payment offerings.CNBC+2

The new program arrives as Apple navigates recent price increases on Macs, iPads, and other products driven by memory chip shortages, a context in which monthly leasing options could help cushion the impact on consumers' wallets.bloomberg