Apple Launches Leasing Program for iPhones and Other Devices
Apple has introduced Apple Upgrade, a leasing program in partnership with Klarna, allowing US consumers to lease iPhones, Macs, iPads, and Apple Watches with the option to upgrade, return, or purchase. The program aims to make the latest Apple products more accessible to customers who prefer regular upgrades. Samsung has also offered a similar program in India, combining financing with a guaranteed buyback.
Key points
- Apple has launched Apple Upgrade, a leasing program in partnership with Klarna, in the US.
- The program allows consumers to lease iPhones, Macs, iPads, and Apple Watches for a monthly fee with the option to upgrade, return, or purchase.
- Apple CEO Tim Cook said the Upgrade program is intended to make it easier for customers to access the company's latest products through a leasing plan.
- Samsung has offered a similar program in India, combining financing with a guaranteed buyback to let consumers upgrade flagship Galaxy smartphones more predictably.
- The shift comes as consumers keep their smartphones for longer, driven by rising prices and incremental hardware improvements.
- Analysts expect the average global replacement cycle for smartphones to increase from 24 months to 30 months by 2025.
The smartphone industry is shifting towards leasing and subscription-based models, with Apple and Samsung leading the charge. Apple's Apple Upgrade program, launched in partnership with Klarna, allows US consumers to lease iPhones, Macs, iPads, and Apple Watches for a monthly fee. The program aims to make the latest Apple products more accessible to customers who prefer regular upgrades.
The program is part of a larger trend in the industry, driven by rising prices and incremental hardware improvements. Consumers are keeping their smartphones for longer, reducing the flow of handme-down devices into the refurbished market. Analysts expect the average global replacement cycle for smartphones to increase from 24 months to 30 months by 2025.
Samsung has also offered a similar program in India, combining financing with a guaranteed buyback to let consumers upgrade flagship Galaxy smartphones more predictably. The shift towards leasing and subscription-based models is expected to have a significant impact on the industry, with manufacturers looking to reduce inventory levels and increase revenue streams.
Sources
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