Apple Launches iPhone Leasing Program Through Klarna

Apple has launched a new leasing program in partnership with Klarna, allowing customers to pay monthly for iPhones, iPads, Macs, and Apple Watches instead of financing them for ownership [1]. The program replaces Apple’s previous interest-free installment plan, shifting the model from a path to purchase to a rental-style agreement that requires users to return the device or pay a final settlement fee at the end of the term [2].

How the leasing model functions

Under the new program, lease terms for iPhones and Apple Watches range from one to two years, while Macs and iPads are available on two- to three-year cycles [1]. Monthly payments start at approximately $12, though costs vary by device and can be reduced by trading in eligible hardware [1]. Unlike the previous iPhone Upgrade Program, which functioned as an interest-free installment plan that resulted in ownership, the new structure requires customers to either return the device, pay a final buyout amount, or enter a new lease at the end of the term [1].

The program also removes the previously included AppleCare coverage, meaning customers must now purchase accidental damage protection separately [1]. To qualify, users must set up an account with AT&T, T-Mobile, or Verizon at the point of purchase, though the devices remain unlocked for future carrier switching [2]. Failure to make payments can result in the cancellation of the agreement and a requirement to pay the full price of the device [2].

Financial considerations and market context

For high-end hardware, the monthly cost can be significant; for example, a MacBook Pro priced over $10,000 can be leased for roughly $230 per month over 36 months [1]. While leasing lowers the initial financial barrier to entry, it may cost more in the long run compared to buying outright if a user intends to keep the device for several years [1].

The program’s value proposition depends heavily on a user's upgrade habits. If a customer prefers to swap for the newest model every few years, the leasing structure simplifies the process [1]. However, because iPhones historically retain value well, users who choose to buy and then resell their devices on secondary markets may recoup more money than they would by returning a leased device to Apple [2]. Consumers are encouraged to compare these lease terms against specific carrier promotions, which may offer better value for those already committed to a service plan [1].

What to watch

• Carrier competition: Monitor whether wireless carriers adjust their own trade-in and upgrade incentives in response to Apple’s direct-to-consumer leasing push.
• Device eligibility: Watch for updates on which models are added to the program, as current exclusions include the iPhone 16 [2].
• Secondary market impact: Observe how the shift toward leasing affects the availability and pricing of used Apple devices on third-party resale platforms.

The transition to a leasing-first model signals a shift in Apple’s strategy to prioritize recurring monthly revenue and frequent hardware turnover over traditional ownership. Whether this model gains traction will depend on whether the lower monthly cost outweighs the loss of equity for the average consumer.