Apple Upgrade: a long-term rental program for iPhone, Mac, and iPad is on the way
Apple has reportedly entered into a strategic collaboration with Klarna to launch Apple Upgrade, an innovative long-term rental program set to debut in the United States on July 28. This plan, according to Bloomberg, represents a significant shift in the commercial policies of the Cupertino company, transforming the purchase of hardware products into a type of monthly subscription accessible through a non-invasive credit assessment.
The structure of the service offers differentiated installment options depending on the category of device chosen by the user. Contracts for the iPhone and Apple Watch will have a maximum duration of 24 months, whereas plans for Macs and iPads will extend up to 36 months. According to reports, the company has established clear limitations on access to the program, excluding certain entry-level devices from the scheme: it will not be possible to purchase the Apple Watch SE, the base version of the iPad, the iPhone 16, and the MacBook Neo through this system.
Apple Upgrade: contractual conditions, redemption, and elimination of AppleCare
The functioning of the plan mirrors the dynamics of automotive leasing. Users have the option to pay off the balance early, upgrade to a newer version before the natural contract expiration, or choose, at the end of the installment period, whether to return the hardware or redeem it to keep ownership. In some cases, these intermediate transactions may incur an additional fee. Unlike the old iPhone Upgrade Program, which will halt new sign-ups concurrently with the launch of the new service, the new formula does not include the comprehensive protection of AppleCare in the base fee.
The need to introduce payment extensions of up to three years is linked to specific economic factors. The company has recently recorded a rise in the prices of the iPad and Mac, while further price increases are expected for upcoming smartphone generations. The rising production costs are driven by the component crisis known as RAMageddon, which refers to the severe global shortage of DRAM memory chips. This scarcity has been caused by massive investments in the artificial intelligence industry, whose infrastructures are absorbing almost all available production, pushing up prices for consumer electronics.
In this complex phase, marked also by the appointment of new CEO John Ternus and the initiation of a legal battle against the startup OpenAI over allegations of trade secret theft, the agreement with Klarna for Apple Upgrade becomes a crucial tool for cushioning the impact of price increases on the public. Offering low monthly rates helps to preserve hardware sales volume and retain the user base even in a time of significant market uncertainty.