Apple has launched a new device rental program, Upgrade, in the US, allowing users to pay monthly for their iPhone, Apple Watch, Mac, and iPad through Klarna. The service is available on the Apple website, the Apple Store app, and in US retail stores.

Covering four types of equipment

According to information released by Apple, the monthly subscription for iPhone starts at $17.99, Apple Watch at $11.99, Mac at $24.99, and iPad at $11.99.

Regarding rental terms, iPhones and Apple Watches offer 1-year and 2-year plans, while Macs and iPads offer 2-year and 3-year plans. Users can view billing schedules and remaining payment progress in the Klarna app.

Apple adjusts its US installment payment system

With the launch of Upgrade, Apple will discontinue its existing self-operated financing and installment programs in the United States, including the iPhone Upgrade Program and iPhone Payments. The new plan means that Apple is transferring these consumer finance services to Klarna for operation.

Apple also stated that users can further reduce their monthly payments when they join the Upgrade program by trading in their old devices through Apple Trade In. Users who pay their lease fees with Apple Card will also receive 3% Daily Cash back.

Behind this is the pressure of hardware prices.

The launch of this new service comes as Apple faces supply chain pressures due to a memory chip shortage. The report mentions that the industry-wide "RAMageddon" is driving up hardware costs, and Apple has already raised prices on some Mac and iPad products, but not yet on the iPhone.

Against this backdrop, the new leasing program appears to be a sales arrangement by Apple to alleviate the financial burden on consumers. Bloomberg reporter Mark Gurman reported last week that Apple was preparing to launch a rent-to-buy device program, and now the project has officially been launched.