Gurman: Apple Set to Announce a Device Upgrade Leasing Program

Bloomberg’s Mark Gurman reports that Apple will soon announce Apple Upgrade, a device leasing program that may ease concerns about rising prices triggered by the component crisis.

Apple Upgrade is a leasing program made in partnership with Klarna, Gurman says. It will support most iPhone, iPad, Mac, and Apple Watch models, and it will work like a subscription service where you pay a monthly fee, can pay off a device early, and then return the device, keep it, or upgrade to a new model at the end of the leasing period. Apple already has a confusing array of payment options for its products, but Gurman says Apple Upgrade will replace them. (I assume the Apple Card-based system will remain.)

Apple Upgrade will not include AppleCare, so customers who want that coverage will need to pay extra for that. Business and education purchases and entry-level products, like the Apple Watch SE, base iPad, iPhone 16, and MacBook Neo are not eligible. It’s not clear what the lease time-frames look like, but I imagine somewhere between 1 and 3 years, and perhaps it will vary by price or product.

Apple Upgrade launches in the U.S. in one week, on July 28, and will be available online and in Apple’s retail stores.