Apple’s anticipated ‘Upgrade’ program may introduce lease-to-own options for iPhones, Macs, and iPads.

As component and RAM shortages continue to push prices up, Apple is set to introduce an “Apple Upgrade” program for leasing new devices. This initiative, as reported by a reliable source, will function similarly to a car lease, allowing users to upgrade to a new device early or choose to keep or return their device at the lease’s conclusion. Klarna is expected to provide financial backing for this program, which will involve a soft credit check for enrollment.

The Apple Upgrade program is anticipated to launch on July 28th, replacing the existing iPhone Upgrade Program and standard financing options for new iPhones. It will be available for most new purchases of iPhones, Macs, iPads, and Apple Watches. Users can expect 24-month leases for iPhones and Apple Watches, while iPads and Macs will have 36-month lease options.

However, budget-friendly devices like the base iPad, iPhone 16, Apple Watch SE, and the popular MacBook Neo are likely to be excluded from this program. Unlike the current iPhone Upgrade Program, the new Apple Upgrade will not include an AppleCare subscription, which is also seeing a price increase.

This upgrade initiative comes on the heels of Apple raising prices on nearly all its products just a month prior. While the iPhone was not part of that price hike, the upcoming iPhone 18 Pro series is expected to set new pricing standards when it launches later this year.