Klarna’s stock surged 6 percent to $18 after Apple introduced Apple Upgrade, a device leasing program in the U.S. that replaces older iPhone payment options with Klarna’s platform. This fresh approach covers iPhones, Apple Watches, Macs, and iPads, offering customers flexible monthly payment plans just ahead of Apple’s fiscal Q3 earnings on July 30, 2026.
Details of the Apple-Klarna Leasing Deal
Apple Upgrade allows users to lease devices for set terms: iPhones and Apple Watches for either 12 or 24 months, and Macs and iPads for 24 or 36 months. Starting payments are as low as $17.99 for an iPhone and $24.99 for a Mac. Premium devices naturally come with higher monthly prices, such as the unlocked iPhone 17 Pro costing $31.99 monthly over two years or $45.99 for a one-year lease.
Applicants undergo a soft credit check through Klarna, designed not to affect credit scores. Customers can further reduce monthly costs by trading in eligible devices. Plus, Apple Card holders can earn 3% Daily Cash on these payments, adding an incentive to adopt this new program. At lease end, users can return the device, buy it outright, or choose to upgrade to the latest model.
Market Reaction and Industry Context
Apple’s switch to this leasing system replaces its former iPhone Upgrade Program and iPhone Payments in the United States. Existing members can transition to the new setup when eligible. Meanwhile, Apple’s shares briefly climbed past a $5 trillion market valuation during the same trading session. The leasing model could help Apple navigate shifting customer demand amid recent device price hikes, notably on iPads and Macs where memory costs have driven prices up.
IDC research director Nabila Popal noted the trend toward more aggressive installment offers in the U.S., where many buyers already rely on trade-ins or financing plans. Bernstein’s data suggests the average iPhone replacement cycle hovers around four years, making such upgrade incentives key for maintaining sales momentum. The Klarna partnership comes just before Apple’s quarterly earnings report, spotlighting investor interest in how this strategy impacts device sales and customer retention.
This content is for informational purposes and does not constitute financial advice.
