Apple has debuted a new leasing scheme in partnership with Klarna, so you can pay for its gadgets with a small monthly fee. Dubbed Apple Upgrade, the leasing programme covers a slew of devices, including iPhone, Apple Watch, Mac, and iPad. You can unlock a discount on your monthly repayments by trading in your current gadgets.
This isn't the first time the Californian firm has offered flexible payment schemes.
The iPhone Upgrade Programme launched in the United States back in 2015, before making its way across the pond the following year. It bundled the latest handset with AppleCare+ for protection against accidental damage.
After 12 payments, iPhone owners could trade-in their handset and upgrade to the newest model, offering an annual upgrade cycle without paying the full cost upfront. It was a popular way to separate the cost of the hardware from your minutes, text messages, and mobile data — while offering the chance to upgrade every year.
The new leasing program, provided by Klarna, offers eligible customers monthly payment options for a wide range of Apple devices
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With the arrival of Apple Upgrade, the iPhone Upgrade Programme has been discontinued in the UK and United States. Its replacement offers many of the same perks, but expands the monthly repayment offer to a whole range of different devices from Apple Store shelves.
Apple Upgrade offers a choice of 12- or 24-month plans for iPhone and Apple Watch, rising to slightly longer 24- or 36-month plans for Mac and iPad. Prices start from $17.99 per month for iPhone (£13.50 converted), $11.99 for Apple Watch or iPad (£9), and $24.99 for Mac (£18.99). Apple Upgrade isn't available in the UK.
At the end of the term, Apple device owners can upgrade to the latest generation, purchase with a one-off payment, or return the device to Apple and exit the scheme. Payments are managed via the Klarna app.
Should you expect to pay more for the latest Apple devices?
The launch of Apple Upgrade, spotlighting the ability to spread the cost of your latest Apple Store purchase could be a sign the US brand believes some shoppers will be put off by the upfront cost of its newest kit.
Affordable monthly payments make these devices more attainable, while the ability to upgrade after a year means rising costs won't stop fans from pocketing the latest models every year. Apple is widely expected to increase the price tag of its bestselling iPhone models in a few weeks.
If so, the iPhone will be the latest in a string of Apple devices to see an increase in price.
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Apple CEO Tim Cook warned about 'unavoidable' price rises earlier this year
| APPLE PRESS OFFICEIn an interview with The Wall Street Journal last month, Apple CEO Tim Cook warned that "price increases are unavoidable" as he compared the spiralling cost of components to "a hundred-year flood".
He explained: "I’ve never seen anything like it in any area in over 40 years."
Following his comments, Apple's most affordable Mac ever, the MacBook Neo increased by £100 — just a couple of months after its launch. At the same time, the Cupertino firm raised prices across its Mac, iPad, HomePod, and Apple TV lineup by varying amounts between £40 and £200.
Apple Upgrade can be seen as a way of making these new price tags affordable, since everything is spread over multiple years with 0% interest.
If Apple sticks to its typical release schedule, the Californian firm will launch several new iPhone models in September.
With the launch of its new Galaxy Z Fold 8, pictured, and Galaxy Z Fold 8 Ultra, Samsung has increased the price of its foldables to compensate for spiralling component costs
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Whispers suggest the company could use the arrival of new hardware to increase the starting price of the iPhone, with some tipsters suggesting the incoming iPhone 18 Pro — the follow-up to the iPhone 17 Pro released in September last year — could cost as much as $200 more than its predecessor.
Given that Apple typically increases price tags by the same numerical value in the UK as the US, that'd see the iPhone 18 Pro rise to £1,199, while the larger iPhone 18 Pro Max would start from £1,399. Ouch.
Rising component costs, memory shortages, and ongoing supply chain pressures are all cited as reasons. While Apple hasn't confirmed the price hikes, anonymous sources report the standard iPhone models could avoid increases, with the biggest hikes reserved for Pro as well as a brand-new foldable iPhone set to rival the latest Galaxy Z Fold 8 and Galaxy Z Fold 8 Ultra from arch-rival Samsung.
Apple isn't alone, with Google confirming its next Pixel smartphone will cost more than its predecessor, and the latest Galaxy Z Fold devices arriving with a steep £100 price rise.
And it's not just smartphones, with Sony's PlayStation 5 consoles undergoing a second price hike within a year, and XBOX consoles due to increase next month. Microsoft was also forced to hike its laptop prices, while the founder of British start-up Nothing has also confirmed that smartphone prices will rise this year.
With prices rapidly rising across almost all product categories, monthly finance and upgrade plans have become increasingly common in both the UK and US. While these payment plans make owning a flagship device more accessible by spreading the cost over time, it's also indicative of a market where many buyers are less able — or less willing — to pay £1,000 or more upfront for a new handset.
Apple's iPhone Upgrade Programme helped popularise this approach by combining monthly repayments with the option to swap to a newer iPhone each year. Similar financing is now offered across much of the industry, with the trend showing little sign of slowing. Samsung has its own Galaxy Club scheme to spread the cost of its smartphones, but has now launched its own credit card too.
Discussing the launch of Apple Upgrade, Apple Vice President of the Apple Store online, Karen Rasmussen said: "At Apple, we put the customer at the centre of everything we do, and we’re thrilled that Apple Upgrade offers our customers, both online and in-store, a more flexible way to pay for the products they love.”