Apple is reportedly partnering with financial technology company Klarna to introduce a new lease-to-own programme that will allow customers to spread payments for devices such as iPhones, iPads, Macs and Apple Watches over several years.

According to Bloomberg, the programme, called Apple Upgrade, is expected to launch on July 28 and will give customers more flexibility in how they pay for and upgrade their Apple devices.

How Apple Upgrade Will Work

Under the reported programme, customers will be able to lease Apple devices for fixed periods, with the option to either keep the device or return it when the lease ends. Customers will also have the option to upgrade to a newer device.

The reported lease periods will vary depending on the product:

  • iPhone and Apple Watch: Up to 24 months
  • iPad and Mac: Up to 36 months

Some transactions may also attract an additional fee, although details of the pricing structure have not yet been disclosed.

The programme is expected to replace Apple's existing iPhone Upgrade programme for new customers, expanding the financing model to cover a wider range of devices.

A New Way to Make Apple Devices More Accessible

The reported partnership comes as Apple faces rising hardware costs linked to ongoing memory chip shortages.

The shortage, driven partly by growing demand from the artificial intelligence industry, has put pressure on electronics manufacturers and contributed to higher hardware prices across the technology industry.

Apple has already indicated that it plans to raise prices, making flexible payment options potentially more attractive to consumers who may find it increasingly difficult to pay for high-end devices upfront.

By allowing customers to spread payments over a longer period, Apple could make its products more accessible while encouraging users to remain within its ecosystem and upgrade to newer devices more frequently.

Klarna Expands Its Role in Consumer Financing

The partnership would also strengthen Klarna's position in the consumer electronics financing market.

The Swedish fintech company has built its business around flexible payment options, allowing consumers to spread the cost of purchases rather than paying the full amount upfront.

For Apple, working with an established financing provider could allow the company to expand its device upgrade model without requiring customers to make large upfront payments.

Apple and Klarna have not yet publicly confirmed the reported programme or provided further details about its terms.

If launched as reported, Apple Upgrade could represent a significant shift in how consumers purchase Apple's increasingly expensive hardware, combining device leasing, flexible payments and regular upgrades into a single programme.