Apple Shifts to Leasing Model via Klarna Partnership

The new program introduces distinct timelines: 24-month terms for iPhones and Apple Watches, and 36-month periods for Macs and iPads. At the conclusion of these cycles, users face a choice: purchase the device outright, trade up for a newer model, or return the hardware to the provider. This structure marks a departure from Apple’s existing financing options, which were designed to facilitate full ownership. Notably, the Klarna-backed initiative excludes AppleCare and mandates a soft credit check for participants.

This strategic shift coincides with rising production costs. Apple recently adjusted prices upward for its Mac and iPad lines in response to memory shortages, with similar expectations for the iPhone release in September. By offloading the financial risk to Klarna, Apple avoids the complexities of managing its own leasing infrastructure, a project the company abandoned in 2024. Investors responded quickly to the announcement, pushing Klarna shares up by 11%.