Apple Launches Product Leasing Program Through Klarna -- 2nd Update

By Joseph De Avila

Apple launched a new product leasing program with Klarna that will allow customers to pay monthly for new devices and then return, upgrade or buy them.

The program, dubbed Apple Upgrade, will offer 12- and 24-month leasing options for iPhone and Apple Watch, and 24- and 36-month terms for Mac and iPad. Klarna, the buy now, pay later company, will provide the leasing options.

The announcement comes a month after Apple raised prices on some of its devices because of soaring memory and chip-storage costs.

Leasing program prices start at $17.99 a month for iPhone, $11.99 for Apple Watch, $24.99 for Mac and $11.99 for iPad, Apple said Tuesday.

At the end of the lease agreement, customers can return the product, get an upgrade or buy the product for a one-time fee.

The leasing initiative replaces Apple's previous iPhone Upgrade program, which was limited to phones. The pricing structure is different, and could mean customers pay less each month.

For instance, an iPhone 17 Pro previously cost $57 a month for two years, with the customer owning the device at the end of the term. Now, customers can pay $32 a month for two years for the same device, and then pay a one-time fee if they want to keep it.

In the now-discontinued program, customers had to pay for AppleCare coverage. In the new program, purchasing AppleCare is optional.

Shares of the iPhone maker inched higher in early trading Tuesday, while Klarna shares were down slightly.

John Ternus is set to take over from Tim Cook as Apple CEO on Sept. 1, just before the company is expected to announce a new foldable iPhone to compete with rival models already on the market.

Cook warned last month that higher prices for iPhones would be inevitable due to the surging costs of memory and storage chips. Increased demand for memory and storage chips from artificial-intelligence companies has raised costs so much that Apple would have to raise device prices substantially to turn a profit. Apple last month raised Mac and iPad prices by $200 or more on some models.

Write to Joseph De Avila at joseph.deavila@wsj.com

(END) Dow Jones Newswires

July 28, 2026 10:07 ET (14:07 GMT)