Apple reportedly set to roll out device leasing programme

The lease programme, known as Apple Upgrade, will reportedly support most iPhone, Mac, iPad and Apple Watch models.

Apple is set to debut a new leasing programme for its devices next week, according to Bloomberg.

The programme, known as Apple Upgrade, will support most iPhone, Mac, iPad and Apple Watch models, according to the publication, which cited anonymous sources close to the matter.

Apple Upgrade will reportedly work like a subscription and users can pay off the device early during their leasing term, upgrade early to a new model or keep it at the end of the leasing period. These transactions may incur an additional fee in “certain cases”, said Bloomberg.

The leased device can also be returned at the end of the term.

Sources told Bloomberg that Apple plans to advertise Apple Upgrade as “as a way to have lower payments versus current financing programmes”, and that the tech giant is planning to halt new enrolments to its existing iPhone payment programmes.

The lease terms for iPhones and Apple Watches will last for 24 months, according to the report, while Mac and iPad leases will run for 36 months.

The tech giant – which previously considered a subscription service for iPhones a few years ago – is also partnering with Klarna for the service, with the payment provider acting as financial backer for the programme.

Apple Upgrade is set to initially launch in the US on 28 July and will be available in Apple’s physical retail stores and online.

Apple price hikes

The news of the upcoming leasing programme comes after Apple raised prices for several of its product ranges last month, citing the ongoing chip shortage and rising component costs.

“The rapid expansion of AI data centres has created an extraordinary surge in demand for memory and storage”, a company spokesperson told news publications at the time, adding that Apple has “never seen a component price increase this much, this quickly”.

Apple said that the worsening situation meant that it couldn’t shield customers from the rising component costs any longer.

While last month’s announcement did not include a price hike for iPhones, recent reports indicate that may be about to change.

Yesterday (21 July), publication Nikkei Asia reported that the world’s largest chipmaker TSMC, which makes processors for a number of tech giants including Apple, plans to raise prices for both its advanced and mature chip production services by up to 10pc in 2027.

The price hike for Apple’s smartphones appears to be already happening, at least in one country so far.

This week it was confirmed that iPhone 17 prices had risen on Apple’s official Japan store, jumping by roughly 10pc from $797 to $877. The iPhone 17 Pro also rose in price, jumping by more than 8pc, while Apple Watch and AirPods models also rose by up to 10pc.

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