With ongoing memory chip shortages that have driven price hikes across most of Apple’s product categories, Apple products have become even more expensive, especially for higher-memory/storage-tier configurations. Apple stated that it was working tirelessly to find solutions, and it looks like Apple has something up its sleeve.
According to Mark Gurman from Bloomberg, Apple is planning to partner with Klarna on a new financing solution that will be dubbed “Apple Upgrade”, and it’s set to launch in the U.S. on Tuesday, July 28, which is just six days from now.
Under this program, customers will be able to finance most of the “essential” products that Apple sells: iPhone, iPad, Apple Watch, and Mac models. iPhones and Apple Watches under Apple Upgrade will be subject to a 24-month term, while iPads and Macs will be subject to a 36-month term. This solution will also give users the flexibility to decide what to do with their devices: they could either pay them off early during the term, upgrade to newer devices early, or keep or return them once they complete the term.
Now, note the word “most” because some lower-priced devices may not be eligible under this financing program. This will include the Apple Watch SE, the base iPad, the iPhone 16, and the MacBook Neo. Interestingly, despite the iPhone 17e being priced below the iPhone 16, the report doesn’t specifically say whether that smartphone will be eligible, but I wouldn’t be surprised if that won’t be the case.
Unfortunately, once this new program goes live, Apple plans to stop accepting new iPhone Upgrade Program sign-ups. But the biggest benefit that the iPhone Upgrade Program has is that it includes AppleCare+ coverage, which will not be included in the upcoming Apple Upgrade program. Interestingly, AppleCare+ for Macs and iPads just got pricier last week.
With that said, it seems that Apple is transitioning from iPhone Upgrade to a more inclusive financing program that covers even more of the core Apple products, and it should help alleviate the sting from seeing the price adjustments recently.
