Klarna Shares Jump on Apple Leasing Partnership
Klarna shares climbed 9% on Tuesday following reports that the Swedish financial technology company will support a new Apple device leasing service.
The program, known as Apple Upgrade, is expected to launch in the United States on July 28. Klarna will reportedly provide the financial backing for the service, while Apple shares also moved slightly higher after the news emerged.
Apple Upgrade to Cover Major Devices
Apple Upgrade will support most models across Apple’s main product categories. These include the iPhone, Mac, iPad and Apple Watch.
The program will operate as a subscription-based leasing service. Customers will make monthly payments rather than paying the full cost of a device immediately.
According to the report, Apple Upgrade will be available through Apple’s physical retail stores and its online shop.
Customers Will Receive Flexible Upgrade Options
The new service will provide customers with several options during or after the leasing period.
Users will be able to pay off a device early, move to a newer model before the agreement ends or keep the product once the leasing term is complete.
Leases for the iPhone and Apple Watch will reportedly last 24 months. Meanwhile, Mac and iPad agreements will run for 36 months.
Soft Credit Check Required
Customers will need to receive approval through a soft credit check before joining the Apple Upgrade program.
A soft credit inquiry generally allows a company to review a customer’s credit profile without the same effect associated with a full credit application.
The service will initially be available only in the United States. Apple has not yet announced whether the program will expand to other countries.
Apple to Replace Existing Financing Options
Apple reportedly plans to stop accepting new customers into its existing iPhone Upgrade Program and standard financing plans.
The company will instead promote Apple Upgrade as a more affordable alternative with lower monthly payments.
The move could make Apple devices more accessible to customers who prefer leasing or regular subscription payments over purchasing products outright.
AppleCare Will Not Be Included
Unlike Apple’s current iPhone Upgrade Program, the new leasing service will not include AppleCare coverage.
Customers who want protection against accidental damage, repairs or other technical problems may need to purchase AppleCare separately.
This distinction could affect the overall cost of the service, particularly for customers leasing more expensive Apple devices.
Several Apple Products Are Excluded
Not every Apple device will qualify for the new program.
Reported exclusions include the Apple Watch SE, entry-level iPad, iPhone 16 and MacBook Neo. Purchases made through Apple’s business and education channels will also be ineligible.
The remaining eligible products are expected to include most mainstream and premium models across Apple’s device portfolio.
Klarna Will Assume the Financial Risk
Klarna’s role as the financial backer means the fintech company will handle the financing responsibilities associated with the leasing agreements.
This arrangement allows Apple to offer a subscription-style service without directly carrying the financial exposure from customer payments.
For Klarna, the partnership provides access to Apple’s large customer base and could strengthen its position in the device financing and leasing market.
Apple Revives Its Hardware Subscription Strategy
Apple previously explored creating an in-house hardware subscription service. However, the company abandoned those plans in 2024.
The reported partnership with Klarna gives Apple another route to introduce a device leasing model without building the entire financing operation internally.
Apple and Klarna had not publicly commented on the reported program at the time the details emerged.
