Apple launches upgrade leasing program with Klarna as partner

Published Jul 29, 02:49 PM UTC

Apple has officially launched its Apple Upgrade leasing program, allowing customers to pay monthly for iPhones, Apple Watches, Macs, and iPads starting at $17.99 per month. The program is designed to encourage more frequent upgrades and higher-end device purchases. The article identifies Klarna (NYSE: KLAR) as Apple's leasing partner, which provides the financial infrastructure, owns the leased devices, and pays Apple upfront. Klarna profits from merchant fees paid by Apple and from refurbishing and reselling returned devices. The author argues that Klarna could be the biggest beneficiary of this partnership due to Apple's massive sales volume, potentially making it a long-tailed revenue driver for the fintech company.