Apple Is Reportedly Working on a Leasing Program for Device Upgrades

Ever wish you could lease a smartphone like you can lease a car? Well, if a new report is to be believed, you’ll soon have the option. Apple is said to be preparing a leasing program called Apple Upgrade for a US launch on July 28.

The plan will cover most iPhones, iPads, Macs, and Apple Watches, with Klarna serving as the financing partner. Under the reported structure, customers will make 24 monthly payments for iPhones and Apple Watches, and 36 monthly payments for Macs and iPads. At the end of the term, customers can keep the device, return it, or upgrade to a newer model. Some transactions may carry an extra fee, says Bloomberg’s Mark Gurman.

Apple Upgrade purportedly differs from Apple’s existing iPhone Upgrade Program, which includes AppleCare+ and gives members a path to a new iPhone after 12 payments. Apple Upgrade isn’t expected to bundle AppleCare and would require a soft credit check. Rumors suggest Apple may limit sign-ups for the older program once the new one begins.

Without Apple’s confirmation of the program or actual payment figures, it’s difficult to tell whether Apple Upgrade will be worth the monthly cost. But for frequent upgraders who cringe at buying a phone outright, it could be worth it to have lower upfront costs, even if a device is pricier at the end of the leasing period.