Is leasing an iPhone right for you? How Apple's Upgrade Program works and who it's for
Apple's Upgrade Program lets you lease devices through Klarna for 24 or 36 months. The device isn't yours to keep at the end of the term, unless you pay an additional fee. The program benefits serial upgraders rather than people trying to save money.
Intelligence analysis by Llama
The Apple Upgrade Program is a leasing program that lets you lease a qualifying Apple device for a predetermined period with a monthly fee lower than the cost of financing it. When the lease ends, you can either return the device in good working condition and get a new lease or keep it for an additional fee.
Imagine you want a new iPhone, but you don't want to pay the full price for it. The Apple Upgrade Program is like a rental service that lets you use a new iPhone for a few years, and then you can get a new one. But at the end of the rental period, you have to give the old iPhone back, unless you pay a little extra to keep it.
Analysis
What is the Apple Upgrade Program?
The Apple Upgrade Program is essentially a leasing program that lets you lease a qualifying Apple device for a predetermined period with a monthly fee lower than the cost of financing it. This new program is managed by Klarna, a financial technology company that offers 'buy now, pay later' (BNPL) payment options for short-term credit.
How does the Apple Upgrade Program work?
The program includes iPhones, iPads, Macs, and Apple Watches. This new program is managed by Klarna, a financial technology company that offers 'buy now, pay later' (BNPL) payment options for short-term credit. Klarna's leasing terms with the Apple Upgrade Program don't incur extra interest, and it's not a financing option, only a lease.
Is leasing an Apple device cheaper than financing one?
As another purchasing alternative, you can buy the same iPhone 17 Pro used in the example above with 24-month financing at 0% interest on an Apple Card, which would put you at around $46 per month. In this plan, you would own the iPhone at the end of two years. After two years, you'd own the iPhone outright, so you could continue using it, sell it, or trade it in for a discount on a new phone, but it's your phone.
Who is the Apple Upgrade Program for?
The Apple Upgrade Program benefits serial upgraders rather than people trying to save money. If you're someone who wants to get a new phone every year or two, the Apple Upgrade Program might be a good option for you. However, if you're trying to save money, you might want to consider other options, such as buying a used phone or waiting for a sale.
Key points
- The Apple Upgrade Program is a leasing program that lets you lease a qualifying Apple device for a predetermined period with a monthly fee lower than the cost of financing it.
- The program includes iPhones, iPads, Macs, and Apple Watches.
- Klarna's leasing terms with the Apple Upgrade Program don't incur extra interest, and it's not a financing option, only a lease.
- The program benefits serial upgraders rather than people trying to save money.
- You can either return the device in good working condition and get a new lease or keep it for an additional fee.
If the Apple Upgrade Program is successful, it could make it easier for people to get the latest technology without breaking the bank. This could lead to more people being able to afford the devices they need, and could also lead to more innovation in the tech industry as people are able to try out new devices and technologies.
However, the Apple Upgrade Program could also lead to people getting stuck in a cycle of constantly upgrading their devices, rather than saving money and buying a device outright. This could lead to people spending more money in the long run, rather than saving it.
