Apple is reportedly working with Buy Now, Pay Later provider Klarna to introduce a leasing scheme for its hardware, according to a Bloomberg report. The programme, named Apple Upgrade, is expected to launch on 28 July 2026 and will cover iPhones, iPads, Macs, and Apple Watches.
How the programme will work
Under Apple Upgrade, consumers will be able to pay for devices over extended periods rather than in a single upfront transaction. According to the report, lease terms for iPhones and Apple Watches will run for up to 24 months, while Macs and iPads will carry terms of up to 36 months. At the end of a lease, customers will have the option to keep the device or return it, with the ability to upgrade to a newer model also built into the scheme. The report notes that some transactions will carry an additional fee, though further details on pricing structures have not been disclosed.
The new offering will replace Apple's existing iPhone Upgrade programme, which the company plans to close to new sign-ups as it shifts customers towards the broader Apple Upgrade scheme covering its wider device range.
Context: memory chip shortages and price increases
The move comes as Apple contends with supply chain pressures linked to a shortage of memory chips, an issue that has affected the wider electronics industry. Demand from the AI sector for memory components has been cited as a contributing factor to the constrained supply. In response, Apple raised prices on its Mac and iPad lines on 25 June 2026, while leaving iPhone pricing unchanged for the time being.
A leasing model offers a way for Apple to spread the cost of higher-priced devices across monthly instalments, potentially easing the impact of price increases on consumer purchasing decisions. Klarna, which specialises in deferred and instalment payment products, would provide the financing infrastructure underpinning the scheme.
The reported partnership arrives during a period of organisational change at Apple. John Ternus took over as chief executive earlier in 2026, and the company has separately entered litigation against OpenAI, filing a lawsuit in July 2026 alleging trade secret theft.
Implications for the payments ecosystem
The reported tie-up illustrates the continued expansion of instalment and deferred payment models into consumer electronics, a sector where component costs are under pressure. For Klarna, a partnership of this scale would extend its footprint in device financing, an area increasingly used by hardware manufacturers to offset rising production costs without directly raising consumer-facing prices. Should the programme proceed as described, it would represent one of the more significant applications of BNPL infrastructure within a major technology company's core sales channel to date.
