Amid recent price hikes for Macs, iPads, and other Apple devices, the company is preparing to introduce Apple Upgrade, a Klarna-backed leasing program that lets customers pay monthly instead of upfront.
- Apple Upgrade offers 24 to 36-month leasing terms with early upgrade options
- Program excludes some entry-level devices and won’t bundle AppleCare coverage
- Leasing may appeal as credit use rises in U.S. households with limited savings
What happened
Apple announced plans to introduce Apple Upgrade, a leasing program for most of its major hardware products including iPhones, iPads, Macs, and Apple Watches. This new option, backed by Klarna and launching July 28 in the U.S., aims to transform the upfront cost of Apple devices into manageable monthly payments.
This announcement comes shortly after Apple raised prices across much of its product lineup, notably increasing the MacBook Air from $1,099 to $1,299 and the iPad Air from $599 to $749. The leasing model will let consumers spread payments over 24 months for iPhones and Apple Watches, and 36 months for Macs and iPads, with options to upgrade early, return the device, or pay off the remaining balance.
Why it matters
Apple Upgrade is positioned as a strategic move to maintain sales momentum despite notable price increases driven by global supply challenges, such as chip shortages. By providing a leasing alternative, Apple enables customers to absorb higher costs by paying incrementally, which could broaden affordability without directly lowering prices.
The timing aligns with broader economic trends where U.S. consumers increasingly rely on credit, as many households have limited cash reserves. With new credit applications hitting a five-year high in June and a significant portion of adults unable to afford emergency expenses without borrowing, flexible payment programs like Apple Upgrade may resonate well with consumers feeling price pressure.
What to watch next
Key areas to monitor include the adoption rate of Apple Upgrade and whether it successfully drives sales of higher-end Apple devices despite their increased prices. It will also be important to see how the exclusion of certain entry-level products and omission of AppleCare coverage affects consumer uptake and overall satisfaction.