Apple has partnered with financial technology firm Klarna to introduce the Apple Upgrade program.
The program allows customers to lease devices like iPhones and MacBooks through monthly payments without requiring outright ownership.
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Users can choose 12-, 24-, or 36-month lease agreements. For example, the $1,200 iPhone 17 Pro Max is available for $35 per month.
Financial partner Klarna conducts soft credit checks to evaluate applicant eligibility.
If a customer misses three consecutive monthly payments, Klarna can terminate the lease contract and transfer the account to a collection agency.
However, Apple confirmed it will not disable or restrict device functionality due to missed payments or defaults.
At the end of the term, users can return devices to upgrade to new models under new lease contracts.
Alternatively, they can purchase the current hardware by paying the remaining retail value in a single lump sum.
Early termination fees apply for those who cancel an active lease contract early.
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Expert Concerns Over Consumer Value
Legal scholars have raised questions about consumer value within the program.
"I don't think people are getting a good deal here," said Aaron Perzanowski, a law professor at the University of Michigan.
"If they were, Apple wouldn't be offering it."
The lease model arrives as macroeconomic factors push hardware retail prices higher. Data center expansion and global storage chip shortages contribute to rising costs and consumer affordability pressures.
Academic experts noted the strategic framing of the financing option.
"It is funny that they frame it as not a loan but as a lease," said Louis Hyman, a history professor at Johns Hopkins University.
He noted that the term "leasing" carries specific economic implications, appealing to consumers seeking updated hardware on constrained budgets.
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Apple's new leasing option aims to expand its ecosystem reach by offering lower monthly barrier costs compared to traditional purchasing installment plans.
