Apple has announced a leasing program in partnership with Klarna, enabling U.S. customers to lease iPhones for as low as $17.99 per month. This initiative comes after Apple raised prices on its iPad and Mac products due to a global memory shortage.
The leasing option, which includes a soft credit check, allows customers to choose between one- or two-year leases for iPhones, with similar options for Apple Watches, Macs, and iPads.
Analysts believe this move could help Apple mitigate the impact of anticipated price hikes on iPhones and encourage customers to upgrade their devices more frequently, as the average replacement cycle has extended to nearly four years.
The program aims to compete with traditional carrier financing options and could attract more customers by shifting the focus from high upfront costs to manageable monthly payments. Notably, the iPhone Upgrade Program has been discontinued, transitioning customers to this new leasing model.
As Apple prepares to report its third-quarter earnings, this strategy may play a crucial role in its financial outlook and market positioning