Apple plans Klarna-backed device leasing service, Bloomberg reports

Apple is preparing a Klarna-backed leasing service for most iPhone, Mac, iPad and Apple Watch models, with a planned July 28 launch, Bloomberg News reported Tuesday, citing people familiar with the matter. The program would give customers another way to spread the cost of Apple hardware as higher component prices have pushed up prices on several devices and pressured consumer electronics demand.

Bloomberg described the planned Apple Upgrade service as a broad shift in Apple’s retail model, with Klarna acting as the financial partner behind the leases. PYMNTS said it contacted Apple and Klarna for comment and had not received responses.

Under the structure described by Bloomberg, Apple Upgrade would resemble a subscription-style lease rather than a conventional purchase financed in installments. Customers would make recurring payments during the term, with options to settle the balance early, move to a newer model before the term ends, or keep using the same device until the lease expires.

At the end of the lease, the customer could return the device, Bloomberg reported. That arrangement would put Apple hardware closer to the car-leasing model, where the customer pays for use over a defined period rather than buying the asset outright at the start.

Lower monthly payments

Apple plans to market the service as offering lower payments than its existing financing options, according to Bloomberg. The company also intends to wind down new sign-ups for its current iPhone Upgrade Program and standard financing plans in favor of Apple Upgrade, the report said.

The structure shifts the funding role away from Apple. Bloomberg reported that Apple had previously explored an internal iPhone and hardware subscription program, then stopped work on that effort in 2024. A partnership with Klarna would allow Apple to offer a leasing-style product without carrying the financing obligation itself, according to Bloomberg’s account.

The planned launch comes after Apple raised prices by hundreds of dollars on several devices, a move tied to an industrywide shortage of memory components, PYMNTS reported. Apple Chief Executive Tim Cook recently told The Wall Street Journal that memory-chip costs were unlike anything he had encountered in four decades.

“We’re doing our best to mitigate the huge increases that are being passed to us, and we’ve been trying to shield our customers from the increases, but the situation has become unsustainable,” Cook told the Journal.

iPhone pricing in focus

PYMNTS reported that Apple’s recent increases did not apply to the iPhone, a distinction that helped the company avoid the smartphone sales downturn that affected some other manufacturers in the second quarter. Bloomberg added that Apple is widely expected to increase the price of a new iPhone model when it is introduced in September.

For Apple, a leasing option could help reduce the immediate cash burden of device upgrades if prices rise further. For Klarna, the agreement would deepen its role in consumer hardware financing at a time when payment structures are becoming a more prominent part of how technology companies sell premium devices.

This story draws on original reporting from PYMNTS.