Apple has launched Apple Upgrade, a new device leasing program in partnership with Klarna that allows customers to rent iPhones, iPads, Macs, and Apple Watches for monthly fees.

Key Points

• The service offers monthly leasing starting at $12 for Apple Watches, $12 for iPads, $18 for iPhones, and $25 for Macs.
• Users can swap hardware for newer models after 12 or 24 months, provided the devices are returned in their original condition.
• Apple Upgrade replaces the previous iPhone upgrade plan, though existing customers can finish their current payment terms or transition to the new system.
• Payments made via Apple Card qualify for 3 percent daily cash back, and trade-ins can be used to reduce monthly leasing costs.
• The program requires users to return devices at the end of the term, meaning customers do not gain ownership of the hardware.

Why it Matters

This shift toward a subscription-based hardware model deepens Apple's ecosystem lock-in while reflecting a broader trend of financializing consumer goods through buy-now, pay-later services. Critics argue that while leasing lowers immediate costs, it ultimately erodes consumer ownership and may lead to long-term financial strain for users.