Apple has reportedly joined forces with Swedish payments firm Klarna to launch a new lease-to-own programme for its devices, in a strategic shift aimed at making its increasingly expensive hardware more accessible to consumers. The programme, named Apple Upgrade, is expected to go live next week, according to a report from Bloomberg.
The scheme will cover iPhones, iPads, Macs, and Apple Watches, with lease periods of up to 24 months for phones and watches, and up to 36 months for laptops and tablets. At the end of the term, customers can either keep the device or return it, with the option to upgrade to a newer model. The report notes that some transactions may carry an additional fee, though details remain vague. Apple is winding down its existing iPhone Upgrade programme and will stop accepting new sign-ups as it transitions to this broader offering.
The launch comes at a turbulent time for Apple. New CEO John Ternus has taken the helm, and the company is simultaneously embroiled in a legal dispute with AI startup OpenAI over alleged trade secret theft. More pressingly, Apple has been grappling with severe supply chain pressures caused by 'RAMageddon' — the industry-wide shortage of memory chips driven by surging demand from artificial intelligence data centres. This has forced the company to raise prices on many of its products, making a leasing model an obvious strategy to cushion the blow for consumers.
For UK consumers, the programme offers a way to access premium Apple devices without the upfront cost, but it also raises questions about total cost of ownership and potential fees. The partnership with Klarna, a buy-now-pay-later provider, places the scheme under the scrutiny of the UK's Financial Conduct Authority (FCA), which has tightened rules on such credit products. Meanwhile, the EU's AI Act and the UK Information Commissioner's Office (ICO) are increasingly focused on data handling by fintech firms, meaning Klarna's role may attract regulatory attention.
Industry experts suggest the programme could boost Apple's market share in the UK, particularly among younger consumers who favour subscription-style payments. However, critics warn that multi-year commitments on rapidly depreciating tech could leave consumers locked into outdated devices or unexpected costs. For UK businesses, the scheme may open up new avenues for corporate device procurement, though careful accounting treatment will be needed to avoid balance sheet surprises.