Key Points
- Apple launches Apple Upgrade, a device leasing program starting at $11.99/month for Apple Watch and iPad, partnering with Klarna across US online and retail stores.
- The subscription model addresses ballooning hardware costs, letting customers spread premium device prices over time as carriers once subsidized phones through wireless plans.
- Apple now manages the subscription relationship directly while Klarna handles financing, shifting control of device economics from carriers to Apple.
Summary
Apple Launches Device Leasing Program With Klarna
Apple is rolling out Apple Upgrade, a leasing and subscription program for iPhone, iPad, Mac, and Apple Watch, launching next week in the US through a partnership with Klarna at both online and retail stores.
Pricing starts at $11.99 per month for Apple Watch and iPad, $17.99 for iPhone, and $24.99 for Mac. The move reflects a structural shift in device economics. iPhones and other hardware have become significantly more expensive—a far cry from the era when an iPhone cost a couple hundred dollars and carriers subsidized the cost through multi-year wireless plans. Device prices have climbed sharply enough that Apple is now positioning a subscription model as the path to ownership.
The leasing option essentially lets customers amortize the cost of premium hardware over time, making the entry price feel lower even if the total lifetime cost may not be. This is not unprecedented—carriers used hardware subsidies for years—but Apple is now the one managing the subscription relationship directly, with Klarna handling the financing infrastructure.
Every deal, every interview. 5 minutes.
TBPN Digest delivers summaries of the latest fundraises, interviews and tech news from TBPN, every weekday.