iPhone Rentals: Apple to Launch a Lease Program for Its Devices — Bloomberg

Apple is preparing to change its approach to selling its devices by launching the Apple Upgrade leasing program, Bloomberg has learned. The service will allow users to rent an iPhone, Mac, iPad, or Apple Watch for several months, with the option to purchase the device or trade it in for a newer model.

Apple will launch its iPhone Upgrade program in partnership with fintech company Klarna. Bloomberg refers to Klarna as the “financial sponsor of the program.” During trading on July 21, Klarna’s shares jumped more than 10% on this news, but ultimately closed the session up 1.44%. Apple shares rose 0.35% on Tuesday.

Apple plans to launch the Apple Upgrade device leasing program on July 28, which will mark one of the biggest changes to the company’s sales strategy in recent years, Bloomberg reports, citing sources familiar with the matter.

According to Apple, Apple Upgrade will operate on a subscription model. Instead of purchasing a new device, the program will allow users to “rent” an Apple gadget, laptop, or smartphone and gradually pay the company its cost. Also, during the term of the lease agreement, Apple Upgrade participants will be able to replace the device they are using with a new, more modern model—or, just like with a car lease, buy out or return the “rented” gadget.

You'll be able to lease an iPhone and Apple Watch for 24 months. Macs and iPads can be leased for 36 months.

In the initial phase, the service will be available at least in the United States through Apple's retail stores and the company's online store.

After the program launches, Apple will gradually stop accepting new customers into its existing iPhone Upgrade Program installment plans—these will be replaced by Apple Upgrade. Unlike the existing programs, the new service will not include AppleCare coverage. It also won’t apply to a number of devices, such as the Apple Watch SE, the base-model iPad, the iPhone 16, and the MacBook Neo, according to Bloomberg.

Apple declined to comment on the new program. Representatives from Klarna did not immediately respond to Bloomberg's inquiry.

The launch of the new program comes a month after Apple raised prices on some Mac and iPad models amid an industry-wide memory shortage.

Apple had previously considered launching a subscription program for the use of its devices but abandoned the idea in 2024, Bloomberg notes. According to the agency, the partnership with Klarna allows the iPhone maker to offer this method of purchasing its products without assuming financial responsibility.

This article was AI-translated and verified by a human editor