Apple launches U.S. device leasing program with Klarna for upgrades

Apple launched a U.S. device leasing program with Klarna on Tuesday, giving buyers monthly plans for iPhones, Macs, iPads and Apple Watches instead of paying the full price upfront. The program, called Apple Upgrade, is now available in the United States and is aimed at making premium hardware easier to buy in smaller installments.

The monthly math is clear. Apple said iPhone leasing starts at $17.99 a month, while Apple Watch and iPad plans start at $11.99 a month. Mac leasing begins at $24.99 a month. The program includes 12- and 24-month leasing options for iPhone and Apple Watch, and 24- and 36-month terms for Mac and iPad, setting a built-in cadence for customers who want to replace devices on a regular cycle rather than wait several years between purchases.

Klarna’s role pushes Apple deeper into the buy-now-pay-later market that has spread across consumer electronics and retail. Reuters said applicants will undergo a soft credit check, which means the financing decision is still screened before a lease is approved even if the customer is not taking out a traditional loan. For Apple, that structure reduces the friction of a high upfront price and can keep users moving through the iPhone, iPad and Mac upgrade path without a large one-time hit to household budgets.

The trade-off is that leasing changes the economics of ownership. Customers gain access to new hardware with lower monthly payments, but the savings come at the cost of flexibility if they would otherwise keep a device longer, resell it privately or trade it in on their own terms. The service also shifts the risk of nonpayment away from Apple’s core hardware sale and into Klarna’s underwriting process, giving Apple a cleaner route to sales while Klarna handles the credit decision.

Apple has already used Klarna to widen access to its products. Klarna announced Apple from Klarna on Oct. 1, 2024 in New York, describing it as a storefront that offered Apple products with flexible monthly payment options. The new leasing program extends that relationship into a more formal U.S. financing channel at a time when Apple is looking for ways to spur sales and keep device upgrades moving in a market where consumers are more selective about big-ticket purchases.