Apple has announced its new Apple Upgrade program, launched in partnership with fintech giant Klarna. This new system allows users to acquire popular Apple devices—such as iPhones, iPads, Macs, and Apple Watches—on a long-term rental basis, offering flexible options at the end of the contract, such as returning, upgrading, or purchasing the device.
Key Features and Starting Prices of the New Program
Replacing the previous program, Apple Upgrade stands out with more accessible starting prices. Operated in partnership with fintech company Klarna, the minimum monthly fees by device category have been set as follows:
- iPhone: Starting at $17.99 per month (e.g., $45.99 for 12 months or $31.99 for 24 months for a 256 GB iPhone 17 Pro).
- Apple Watch: Starting at $11.99 per month.
- iPad: Starting at $11.99 per month.
- Mac: Starting at $24.99 per month.
Rental terms vary depending on the device type. While 12- and 24-month terms are offered for iPhone and Apple Watch, this period extends to 24 or 36 months for Mac and iPad models. Furthermore, unlike previous models, AppleCare+ packages are not automatically included in the price; users can optionally add these packages if they wish.
Three Options Awaiting Users at the End of the Contract
Users reaching the end of their rental period can choose one of three distinct paths:
- Return: Exit the program by returning the device to Apple.
- Upgrade: Switch to the latest model by signing a new rental agreement.
- Purchase: Take ownership of the device by paying the remaining balance (the difference between the retail price and the total rental fee paid) in a single lump sum. Klarna does not charge extra interest for this purchase transaction. If no action is taken, the rental is extended on a monthly basis for a maximum of 6 months, after which the remaining balance is collected.
Excluded Models and Geographic Availability
Currently active in Apple Store locations and the official website in the US, the program does not cover all products. The iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, entry-level iPad, and Studio Display models have been excluded from the program. Additionally, refurbished devices and products purchased with educational discounts are not included in this system.
Industry Implications and Global Trends
This subscription- and rental-focused move by Apple offers an alternative financing model against high price tags in the smartphone and tech gadget market. Creating an attractive alternative, especially for consumers looking to renew their hardware every year or two, this system has sparked curiosity over whether other manufacturers in the global tech market will adopt similar financial partnerships.
Frequently Asked Questions
Is AppleCare+ mandatory in the Apple Upgrade program, and how does the warranty process work?
No, AppleCare+ or AppleCare One packages are not automatically included in the rental fee. Users can optionally include these protection packages in their rental agreements for an additional fee if they wish.
Is extra interest charged when purchasing the device at the end of the contract term?
No, Klarna does not charge any extra interest when the remaining balance—the difference between the retail price and the amount paid during the rental period—is paid in a single lump sum.
*This news article was prepared by Webtekno based on data published by Artificial Intelligence.
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