Apple plans device leasing as Google adds specialized Gemini AI models

Apple shares edged higher after Bloomberg News reported that the company is preparing a device leasing service with Klarna, while Alphabet’s Google announced three new Gemini artificial intelligence models. The developments come as investors assess whether consumer hardware financing and enterprise AI efficiency can support growth at two of the world’s largest technology companies.

Bloomberg reported that Apple’s planned service, called Apple Upgrade, is expected to begin on July 28 in the United States. The program will cover most iPhone, Mac, iPad and Apple Watch models, according to the report, and will be offered through Apple’s website and physical stores.

The structure differs from a traditional upfront purchase. Customers would pay through a subscription-style lease, with the option to move into a newer model before the term ends or retain the device when the lease expires, Bloomberg reported. Klarna, best known for buy now, pay later financing, is expected to be Apple’s partner on the program.

CNBC’s Investing Club said the service could soften the effect of higher device prices, which it attributed to rising memory costs across several Apple products. Monthly payments may also make upgrades more accessible for customers who have kept older iPhones for four or five years or longer, the Investing Club said.

For Apple, the commercial logic extends beyond the payment schedule. Newer devices are needed to run Apple Intelligence, the company’s artificial intelligence features, and more powerful hardware can support a wider range of apps. A multi-year leasing relationship may also keep customers inside Apple’s product and services system for longer, according to the Investing Club.

Separately, Google said it had introduced Gemini 3.5 Flash-Lite, Gemini 3.5 Flash Cyber and Gemini 3.6 Flash. The company presented the models as specialized versions of Gemini designed for different uses, rather than a single general-purpose release for every customer need.

The announcement followed concerns over the timing of Gemini 3.5 Pro. CNBC’s Investing Club said the flagship model had originally been expected in June and was running behind schedule. In a statement cited alongside the announcement, Google said Gemini 3.5 Pro is being tested with partners and would be released broadly when ready. The company also said it has begun pre-training work for Gemini 4.

The new models reflect a shift in how companies are using generative AI. CNBC’s Investing Club said some corporate customers have faced larger-than-expected computing bills after sending broad workloads to the most advanced models available. AI systems process information in units called tokens, and higher token use generally increases the cost of running queries.

Specialized models can reduce that burden by matching the tool to the task. A cybersecurity model, for example, may be built for threat-related workloads, while a lighter model can handle higher-volume, lower-complexity requests at lower cost. CNBC’s Investing Club pointed to Gemini 3.5 Flash Cyber as an example of Google moving in that direction.

Alphabet is scheduled to report results Wednesday evening, with investors watching whether the company, along with other large technology groups, signals higher capital spending tied to AI infrastructure. Capital One, Interactive Brokers, EQT, Chubb and Alaska Air Group were scheduled to report Tuesday night, while GE Vernova, AT&T, PulteGroup and Otis Worldwide were listed for Wednesday.

This story draws on original reporting from CNBC.