Apple Will Allow Customers to Rent iPhones and Other Devices With the Option to Buy Them Later — Bloomberg
Apple is preparing to launch a new program called Apple Upgrade, which will allow users to rent devices with the option to later purchase them or upgrade to newer models on a regular basis. This new sales model will cover the iPhone, Mac, iPad, and Apple Watch.
The program is set to launch on July 28 in the U.S. and will effectively shift the purchase of Apple devices to a subscription model. Klarna Group Plc will serve as the project’s financial partner, providing payment infrastructure and credit solutions for users.
Under the terms of Apple Upgrade, iPhone smartphones and Apple Watches can be leased for 24 months. For Mac computers and iPad tablets, the lease term will be 36 months.
At the end of the term, users will have several options: buy the device outright, pay off the balance early, upgrade to a newer model, or return the device to the company.
A simplified credit check is required to enroll in the program. However, Apple will not include AppleCare+ insurance in the new program—users will have to purchase it separately.
The launch of Apple Upgrade comes amid rising prices for the company’s devices. Apple has already raised the prices of some Mac and iPad models due to a shortage of components, particularly RAM, and new iPhone models are also expected to become more expensive.
The company hopes that lower monthly payments will help make premium devices more affordable for buyers and boost sales.
Initially, the program will be available only in the U.S.—at Apple retail stores and through the official website. The company plans to expand it to other countries in the future, but has not yet announced a specific list.
Some budget models will not be included in the program, specifically the iPhone 16, Apple Watch SE, the base-model iPad, and the MacBook Neo. Apple Upgrade will also be unavailable to business customers and educational institutions.
This was reported by Bloomberg.
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