Now there is a new way to own an Apple product. Starting today in the US, you’ll be able to rent an iPhone, iPad, Mac or Apple Watch directly from the company through its new Apple Upgrade program.
Powered by Klarna, lease prices for Apple products will start at $18 per month for an iPhone and $12 per month for an Apple Watch, with 12- and 24-month lease options. If you’re in the market for an iPad or Mac, you’re likely to keep that device for a long time, and Apple offers 24- or 36-month lease options for these devices.
You can check out the different options either online or through the Apple Store, or you can go to an Apple store in person. If you have an existing device that you trade in, you can also lower your monthly lease costs.
The leasing program may come as welcome news to anyone who’s been overwhelmed by the thought of buying an Apple device outright — especially right now. Just last month, Apple raised the prices of all its devices due to RAMageddon, an industry-wide memory shortage that is driving up the prices of not only Apple products, but all consumer electronics. This came not long after Apple CEO Tim Cook called a price hike “inevitable.”
The price increase is expected to affect upcoming launches, including Apple’s rumored September iPhone event. If Apple unveils a new foldable iPhone, as expected, it is likely to be more expensive than any of its existing models, just as Samsung’s foldable is more expensive than its other flagship phones.
The leasing program can prove a popular strategy at a time when many households are struggling with the cost of living. It’s a big financial challenge for Apple to balance rising component costs at a time when people are becoming more price-sensitive, said Dipanjan Chatterjee, vice president and senior analyst at Forrester.
“Since they’ve already raised prices, Apple has limited room to raise them without extending development cycles,” Chatterjee said. “The new leasing program is a smart answer: It doesn’t lower the price of the iPhone, but it changes the way consumers perceive costs by replacing sticker shock with a predictable monthly payment.”
Apple says signing up for the program is easy, and can only take a few minutes. Klarna will perform a soft credit check on applicants that will not affect their credit score.
At the end of the lease period, customers will be given the option to return their device, buy it outright for a small fee, or upgrade.
