Apple has launched a device leasing program in partnership with Klarna, allowing eligible U.S. customers to pay for iPhones, Apple Watches, Macs and iPads through monthly installments.
Apple Upgrade is available through the Apple Store website, the Apple Store app and physical Apple Store locations. Monthly prices start at $17.99 for iPhone, $11.99 for Apple Watch, $24.99 for Mac and $11.99 for iPad.
Customers can choose one- or two-year leases for iPhone and Apple Watch. Mac and iPad are available with two- or three-year terms. At the end of the lease, customers can upgrade to the latest version of the device, buy their current device with a one-time payment or return it and leave the program.
Lease details, including payment schedules and remaining balances, can be managed through the Klarna app.
Apple is introducing the program as memory chip shortages continue to raise hardware costs across the industry. The company recently increased prices for its Mac and iPad lineups, while leaving iPhone prices unchanged for now.
The launch also marks the end of Apple’s existing in-house financing options in the U.S., including the iPhone Upgrade Program and iPhone Payments.
Bloomberg’s Mark Gurman reported last week that Apple was preparing to introduce a lease-to-own option for its devices.
Customers can reduce their monthly payments by trading in an existing device through Apple Trade In. Apple Card users can also earn 3% Daily Cash on lease payments.
