Apple is partnering with payment processor Klarna to launch the Apple Upgrade lease‑to‑own program, set to launch July 28, offering multi‑year payment plans for its devices.

Apple has announced a partnership with payment‑processor Klarna to roll out the Apple Upgrade lease‑to‑own program, a multi‑year financing option that will let customers spread the cost of iPhones, iPads and Macs over several years while retaining the ability to upgrade.

How the Apple Upgrade Program Works

The service, slated to launch on July 28, will let users select a device, choose a lease term of 12, 24 or 36 months and make fixed monthly payments through Klarka’s platform. At the end of the term, customers can either keep the device, upgrade to a newer model, or return it for a refund of any remaining value.

Unlike Apple’s traditional Upgrade Program, which requires a credit check and a monthly subscription tied to Apple’s own financing, the new lease‑to‑own model leverages Klarna’s “buy now, pay later” infrastructure, offering more flexible credit options and the possibility of early termination without hefty penalties.

Device Eligibility and Pricing

The initial rollout will cover the latest iPhone 16 series, iPad Pro (6th generation) and the MacBook Air M3. Prices will mirror Apple’s retail list, with monthly payments calculated to include the device’s full cost plus a modest service fee. Klarna says the program will be available in the United States, Canada, the United Kingdom and select European markets.

  • iPhone 16 Pro – 24‑month lease starting at $49 per month
  • iPad Pro 12.9‑inch – 36‑month lease starting at $39 per month
  • MacBook Air M3 – 24‑month lease starting at $45 per month

Benefits for Consumers

Consumers gain several advantages: the ability to upgrade annually without waiting for a contract to end, no long‑term commitment beyond the lease term, and access to Klarna’s flexible payment scheduling, which can be paused or adjusted in case of financial hardship.

The program also integrates with Apple’s existing ecosystem, allowing users to manage their lease directly from the Settings app, view payment history, and receive notifications when an upgrade window opens.

Potential Market Impact

Industry analysts see the partnership as a strategic move to capture price‑sensitive buyers who might otherwise turn to Android competitors offering aggressive financing. By bundling Klarna’s credit‑risk management with Apple’s premium hardware, the company hopes to boost device sales in the mid‑range segment while maintaining its high‑margin brand positioning.

“This collaboration expands Apple’s financing toolkit and gives shoppers a more adaptable way to experience our latest devices,” said Tim Cook in a brief statement.

The Apple Upgrade lease‑to‑own program represents a notable shift in how the tech giant approaches device financing, blending traditional leasing with modern “buy now, pay later” models to appeal to a broader consumer base.

TechCrunch coverage of Apple’s lease‑to‑own partnership with Klarna