Apple may soon launch a new device leasing program called Apple Upgrade, giving customers another way to get iPhones, Macs, iPads, and Apple Watches through monthly payments.

This would allow Apple to offer a subscription-style hardware program without taking on the direct financial responsibility itself.

The program could launch in the US as soon as July 28, Bloomberg reported, citing people familiar with the matter. Apple has not officially announced the service yet, so the details should be treated as reported information for now.

Apple Upgrade is expected to work more like a device lease than a normal installment plan.

Customers may be able to upgrade to a newer device early, return the device at the end of the lease period, keep it, or pay it off early during the term. The program will reportedly require a soft credit check.

Leases are expected to last 24 months for iPhones and Apple Watches, while iPads and Macs may have 36-month terms.

The program will reportedly support most iPhone, Mac, iPad, and Apple Watch models.

However, some lower-end or older devices may not be eligible. The report says models such as the iPhone 16, MacBook Neo, Apple Watch SE, and base iPad may be excluded.

Unlike the current iPhone Upgrade Program, Apple Upgrade reportedly will not include AppleCare.

Apple is reportedly partnering with Klarna for the new service.

According to the report, Klarna would act as the financial backer for Apple Upgrade.

Apple and Klarna already work together, as Klarna has been available as a buy now, pay later option through Apple Pay.

Apple may also stop new sign-ups for the current iPhone Upgrade Program and some standard financing options.

That would make Apple Upgrade the company’s main monthly-payment route for many hardware purchases. The move could simplify Apple’s payment plans, but it may also change what customers get compared with the current upgrade program.

The reported program comes after Apple raised prices on several devices.

A leasing-style option could make expensive devices feel easier to buy by spreading payments over time instead of requiring a large upfront purchase. It could also help Apple support hardware sales and add more recurring revenue, similar to the way its services business already works.

However, buy now, pay later and lease-style programs can carry risks for consumers, including fees for missed payments and higher long-term costs in some cases.

Apple Upgrade is expected to launch first in the US.

It is not yet clear whether Apple will bring the program to other markets at launch or expand it later.

For now, Apple Upgrade remains unannounced. But if the report is accurate, Apple is preparing a major shift in how it sells its most important devices.

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