Report: Apple Set to Launch New Hardware Upgrade Program July 28
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Although we’ve heard sporadic reports over the years that Apple has considered a hardware “subscription” service, nothing much ever seemed to come of it. In fact, the latest we’d heard was that Apple had shelved the idea entirely. Now, it looks like the plan is back in play, albeit perhaps in a slightly different form than we’d initially heard.
Earlier today, Bloomberg’s Mark Gurman, who has been the primary source or previous reports, revealed that Apple is preparing to introduce a new “Apple Upgrade” leasing program as soon as next week.
The service is expected to launch on July 28, and will “support most iPhone, Mac, iPad and Apple Watch models,” Gurman’s sources tell him. The new initiative will replace the iPhone Upgrade Program, which was announced in 2016 to help users get a new iPhone each year.
That earlier program was backed by Citizens One but entirely fronted by Apple. By contrast, the new Apple Upgrade program is being put together in partnership with Klarna, although it’s unclear whether the popular BNPL service will be a silent partner, strictly providing behind-the-scenes financing.
Either way, Apple Upgrade appears to be a departure from the hardware subscription program Apple was considering four years ago. At that time, Apple was dabbling in financial services, launching its own short-lived Apple Pay Later BNPL service. While Apple Pay Later was announced at Apple’s 2022 Worldwide Developers Conference (WWDC), it didn’t even begin to roll out until almost a year later, and it wasn’t until iOS 17 landed in late 2023 that it gained widespread availability.
Meanwhile, the rumored hardware program never got off the ground. Instead, Apple shuttered Apple Pay Later, choosing to integrate Apple Pay with third-party BNPL services like Affirm and Klarna instead. The message seemed clear: Apple was getting out of the financing business.
So, it’s not too surprising that Apple is partnering with Klarna for a new leasing program, although it’s not entirely clear how much this will differ in practical terms from the financing options that are already available.
The Apple Upgrade service will work like a subscription and users can pay off the device early during their term, upgrade early to a new model or keep it at the end of the leasing period. In certain cases, those transactions will incur an additional fee. Like a car lease, it can also be returned at the end of the term.
Mark Gurman
There will be standard lease terms of 24 months for iPhones and Apple Watches and 36 months for Macs and iPads. A soft credit check will be required for approval.
Apple Upgrade also won’t include AppleCare, and entry-level devices like the Apple Watch SE, iPad (A16), iPhone 16, and MacBook Neo won’t be eligible, nor will business and education purchases.
According to Gurman, the primary selling point for the Apple Upgrade program will be lower payments compared to the alternatives, but Apple also reportedly plans to nix its standard financing plans, so the only other options will be credit cards or third-party financing companies.
Apple Card holders will likely be able to continue taking advantage of special zero percent interest arrangements, but they’ll still need to put the full cost of an iPhone or Apple device onto their Apple Card, much like other credit card-based financing plans work.
[The information provided in this article has NOT been confirmed by Apple and may be speculation. Provided details may not be factual. Take all rumors, tech or otherwise, with a grain of salt.]
