Apple launched a new device leasing service in the US, allowing users to purchase iPhones, Apple Watches, Macs, and iPads on a monthly payment basis through Klarna. Following the announcement, Klarna's stock price rose to $18, a daily increase of approximately 6%.
Covering multiple types of equipment
The service, called Apple Upgrade, is now available on Apple's website, app, and retail stores. For Apple, the new plan adds an installment payment option for hardware sales; for Klarna, it means entering Apple's core sales network in the United States.
The new plan is no longer limited to iPhones. According to information released by Apple, iPhones and Apple Watches can be leased for 12 or 24 months, while Macs and iPads are offered for 24 or 36 months.
- iPhone starting at $17.99 per month
- Apple Watch and iPad start at $11.99
- Mac starting at $24.99 per month.
Higher-spec models are more expensive; for example, an unlocked iPhone 17 Pro costs $31.99 per month for a 24-month plan and $45.99 per month for a 12-month plan. Apple states that applicants will need to undergo a soft credit check by Klarna, but this will not affect their personal credit score.
Replace the original two installment plans
Apple says the new leasing service will replace the existing iPhone Upgrade Program and iPhone Payments in the U.S. market. Existing iPhone Upgrade Program users can switch to Apple Upgrade once they meet the requirements.
In addition to the new plan, consumers can still choose Apple Card Monthly Installments, carrier installment payments, or outright purchase. After the lease period ends, users can return the device, purchase it outright, or upgrade to a new model.
Apple also stated that users can further reduce their monthly payments by trading in an eligible older device. Users who pay with Apple Card will also receive 3% Daily Cash back.
Apple releases sales signals ahead of earnings report
The timing of this collaboration announcement comes just before Apple's earnings report. Apple will release its fiscal third-quarter 2026 results after the US stock market closes on July 30, with the market focusing on device demand, service business growth, profit margins, and product pricing strategy.
For Klarna, partnering with Apple expands its business further from "buy now, pay later" to the field of device financing, and will also directly confront the carrier installment models long used by AT&T, Verizon and T-Mobile.
Additional information:Apple's stock price also rallied during Tuesday's trading session, briefly pushing the company's market capitalization above $5 trillion. The market is also focused on this being the last earnings update before Tim Cook becomes executive chairman; Apple previously announced that John Ternus will succeed him as CEO.
