Apple launched Apple Upgrade in the United States, and Apple Watch leasing starts at $11.99 per month. The program is available through Apple Store online, the Apple Store app, and Apple Store locations. For buyers who want a monthly path instead of paying all at once, the choice now sits inside Apple’s own retail channels.
Karen Rasmussen on Apple Upgrade
Karen Rasmussen, Apple’s vice president of the Apple Store online, said, “At Apple, we put the customer at the center of everything we do,” and “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.”
The pricing floor is the clearest part of the launch. Apple Upgrade offers 12-month and 24-month leasing options for iPhone and Apple Watch, and customers can lower monthly payments by trading in a currently owned device through Apple Trade In when they first enroll.
Klarna and Apple Upgrade
Apple said the program is provided by Klarna, and applicants can receive quick approval within minutes after a soft credit inquiry that will not impact credit score. That setup makes the decision path fast, but it still leaves the approval rules with Klarna rather than with a simple open checkout flow.
Customers can keep lease details in the Klarna app, including billing schedule and remaining payments, and they can add an AppleCare subscription for protection. In-store customers can take their new device right away, while online customers can choose delivery or in-store pickup.
Apple Watch and the old programs
At the end of the lease term, customers can upgrade to the latest generation, purchase the device with a one-time payment, or return it and exit the program. Apple also said it will no longer offer the iPhone Upgrade Program and iPhone Payments in the United States, so the new leasing lane replaces older financing paths even as Apple makes the terms sound more flexible.
One open question is how many customers will use Apple Upgrade in the United States, especially now that the Apple Watch option starts at $11.99 per month and the old iPhone programs are being retired there.
