In his Power On newsletter today, Bloomberg‘s Mark Gurman reiterated that Apple and Klarna are partnering on a new “Apple Upgrade” program set to launch in the U.S. on Tuesday, July 28. Apple will stop accepting iPhone Upgrade Program sign-ups on the same day, but he said customers who are already enrolled will be able to remain in the program “for the time being.”
The program will allow you to lease most iPhone, iPad, Mac, and Apple Watch models, with a 24-month term for iPhones and Apple Watches and a 36-month term for iPads and Macs. Customers will have various options, including returning their device after the term, upgrading to a newer device, paying a fee to keep the device, and so forth.
Some lower-priced devices, including the Apple Watch SE, the entry-level iPad, the iPhone 16, and the MacBook Neo, will not be eligible, he said.
Klarna is a popular “buy now, pay later” service, similar to Affirm. Apple Upgrade will require a soft credit check, and additional fees may apply in some cases.
Apple plans to stop accepting new iPhone Upgrade Program sign-ups once the new Apple Upgrade program launches, he said. Unlike the iPhone Upgrade Program, however, Apple Upgrade will apparently not include AppleCare+ coverage bundled in.
Apple plans to advertise the program as a way to have lower monthly payments compared to current financing programs, according to the report, so it sounds like Apple Upgrade will be focused on leasing rather than traditional financing, and it will effectively replace the iPhone Upgrade Program for new purchases going forward.