Apple to launch device leasing program with Klarna on Tuesday

Apple is set to launch a new device leasing program called 'Apple Upgrade' on Tuesday, according to reports. The program, developed in partnership with the financial technology company Klarna, aims to make Apple products more accessible through monthly payments and an upgrade option.

The leasing plan will allow customers to pay for devices like iPhones in installments, with the ability to upgrade to a newer model after a set period. This affects consumers who want the latest Apple hardware without paying the full upfront cost, potentially broadening Apple's customer base. The program is seen as a response to rising Mac prices and a strategy to boost sales in a competitive market.

Code in iOS 27 reportedly includes a feature that lets Apple deactivate leased iPhones if payments are missed, ensuring compliance. This matters because it introduces a new financial model for Apple products, shifting from outright purchases to ongoing subscriptions, which could change how consumers think about device ownership.

Specific details from the source indicate the program launches Tuesday, though exact pricing and terms are not provided. The partnership with Klarna, known for buy-now-pay-later services, suggests a focus on flexible payment options. Background reports note that Apple recently raised Mac prices, which may have prompted this leasing alternative to maintain affordability.

Looking ahead, the program could expand to other Apple products and regions if successful. However, critics have called the leasing plan a potential 'trap,' warning that it may lock customers into a cycle of continuous payments. The next steps will likely involve monitoring consumer adoption and any regulatory scrutiny of the leasing terms.