Apple Blows Up Its Sales Model With Bold New Leasing Plan

Apple is preparing to roll out Apple Upgrade, a sweeping new leasing program that Bloomberg's Mark Gurman describes as one of the biggest changes to the company's sales model in years. Set to launch on July 28, 2026, the program will cover most iPhone, Mac, iPad, and Apple Watch models, allowing customers to make monthly payments rather than a single upfront purchase. Apple is partnering with Klarna Group as the financial backer, tapping the Swedish fintech firm's expertise in deferred payments to offer the leasing option without taking on direct credit risk itself.

Under the new structure, iPhone and Apple Watch leases will run for 24 months, while Mac and iPad leases stretch to 36 months, with customers able to pay off a device early, upgrade to a newer model, or simply keep or return the device once the term ends. The program will replace Apple's long-running iPhone Upgrade Program, which has been in place since 2015, and arrives just weeks after Apple raised prices across several product lines amid an industry-wide memory chip shortage. Entry-level models, including the iPhone 16, Apple Watch SE, and base iPad, will reportedly be excluded, positioning Apple Upgrade squarely at the premium end of the lineup.

Markets took swift notice of the news, with Klarna shares jumping sharply on the announcement as investors weighed the significance of landing Apple as a partner in the competitive buy-now-pay-later space. Apple's own stock traded around $325 intraday as the report circulated, reflecting cautious optimism that the leasing model could help offset softening demand driven by higher hardware prices. Industry analysts say the move underscores just how seriously Apple is treating the affordability squeeze facing consumers, and whether the leasing approach can meaningfully boost volumes may become one of the most closely watched storylines in tech through the back half of 2026.