Apple is preparing to launch a device rental program called Apple Upgrade in what will be one of the most significant changes to the way the company sells products ever. According to people familiar with the matter, the new service is scheduled to go online on July 28 and will cover most iPhone, Mac, iPad and Apple Watch models. Apple will partner with Klarna Group Plc, which will provide financial support for the initiative.
The plan will initially be launched in at least the United States and cover both Apple physical retail stores and online channels.
Apple Upgrade works like a subscription service. Users can pay off the equipment in advance during the lease period, upgrade to a new model in advance, or keep the equipment after the lease period. In some cases, these operations will incur additional charges. Similar to car rentals, users can return the device at the end of the rental period.
Lease terms are 24 months for iPhones and Apple Watches, and 36 months for Macs and iPads. Users need to pass credit qualification review before joining the program.
A few weeks ago, Apple raised the prices of Macs, iPads and other devices by hundreds of dollars due to an industry-wide shortage of memory chips. The market generally expects that Apple will also raise the price when it releases the new iPhone in September.
Unlike the current iPhone Upgrade Program, Apple Upgrade does not include AppleCare. Some devices such as Apple Watch SE, entry-level iPad, iPhone 16 and MacBook Neo are not eligible for this plan. Business and education procurement are also excluded.