Apple is reportedly planning a new lease-to-own program that stretches beyond the existing iPhone Upgrade Program and will see the launch of a much more expansive Apple Upgrade Program that would include more devices from the portfolio.
Bloomberg’s Mark Gurman says the ‘winding down’ of the iPhone Upgrade Program will usher in a broader program where Apple fans could lease the latest devices and either keep the hardware, grab an upgrade and begin a new lease term. The erstwhile reporter calls it “one of the biggest-ever changes to how the company sells devices.”
According to Gurman, Apple plans to align with the buy-now-pay-later platform Klarna on the scheme, which will offer iPhone and Apple Watch leases for periods of up to 24 months. iPads and Macs will have least periods up to 36 months, the report says.
Apple Card credit card owners already have the opportunity to spread purchases out without paying interest, but there’s no upgrade path at the end of that period. It’s not clear how much of a premium buyers would be paying by leasing through Klarna either.
Apple recently raised the price of Macs, iPads, and Apple TV models due to the increased cost of RAM and shortage, which has driven component prices up considerably. Apple has not increased the price of iPhone models yet, but that’s expected to happen in September.
Apple said the price increases were unavoidable, but a broader leasing-to-own scheme may represent a way for users to avoid dropping hundreds more at the point of purchase and spreading that cost out over a couple of years.
According to Gurman the program will launch on July 28. The sources ‘who asked not to be identified discussing unannounced initiatives’ did not say whether Apple plans to offer this internationally beyond the United States. Apple has not commented on the reports as yet.
Read the full article here
