Apple has launched a major new program that lets customers lease its hardware on monthly payments instead of buying outright, positioning the company more firmly as a subscription-driven business. On July 28th, Apple introduced Apple Upgrade in the United States, a Klarna-backed leasing service available online and in Apple Stores. It replaces the older iPhone Upgrade Program and extends subscription-style access across most iPhones, iPads, Apple Watches, and Macs. How it works Customers choose lease terms of 12 or 24 months for phones and watches, or 24 or 36 months for tablets and computers. Starting prices are roughly: • iPhone: from about $17.99–$18 per month • Apple Watch and iPad: from about $11.99–$12 per month • Mac: from about $24.99–$25 per month Exact amounts vary by model, configuration, and term length. Higher-end devices cost more (for example, certain MacBook Pros start in the high $30s to $50s range). A soft credit check is required. Trade-ins can lower monthly payments, and Apple Card users may earn Daily Cash on payments. At the end of the term, users can upgrade to a newer device, pay a one-time fee to keep the current one, or return it. Early upgrades, early payoffs, or terminations can incur extra fees. AppleCare is not included and must be purchased separately. Some lower-cost models (such as the Apple Watch SE, entry-level iPad, certain older iPhones, and the MacBook Neo) and business/education purchases are excluded. Why it matters The program arrives as Apple’s services business continues to grow strongly and as hardware prices have risen amid industry-wide memory and storage shortages driven by AI demand, Bloomberg News’ Mark Gurman notes in his most-recent newsletter. By partnering with Klarna, Apple offers lower monthly outlays and easier access to the latest devices without taking on the full financing risk itself. This move answers a long-standing question about Apple’s next growth phase. Combined with its existing software and media subscriptions (now totaling well over a billion paid subscriptions across Apple services and App Store apps), Apple Upgrade pushes the company closer to a full hardware-plus-services subscription model. Customers stay in the ecosystem longer, upgrade more frequently, and generate recurring revenue rather than one-time hardware sales. In short, Apple is no longer just selling products, it’s increasingly selling ongoing access to them. The new leasing program is the clearest signal yet of that strategic shift. MacDailyNews Take: Apple just made the smartest move in years. By turning hardware into a true subscription via Apple Upgrade + Klarna, Cupertino locks customers into the ecosystem, smooths out lumpy iPhone cycles, and rakes in predictable revenue while competitors still chase one-time sales. Yet, if you still want to buy outright, you can! Welcome to the optional Apple-as-a-Service era. Support MacDailyNews at no extra cost to you by using this link to shop at Amazon. The post Apple turns devices into subscriptions: New ‘Apple Upgrade’ leasing program marks shift to hardware-as-a-service appeared first on MacDailyNews. You're currently a free subscriber to MacDailyNews. For the full experience, upgrade your subscription.
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