Apple has raised Mac prices. Now he might rent you one

Apple doesn’t seem interested in making its increasingly expensive devices cheaper. Alternatively, it may make ignoring the price easier.

The company plans to launch Apple Upgrade, a rental program powered by Klarna for most people iPhone, iPads, Macs and Apple watchesOn July 28 in the United States. According to a Bloomberg report.

The reported leasing program comes less than a month later Apple has raised prices across much of its device lineupblame the global shortage of memory and storage chips. the MacBook Air It jumped from $1,099 to $1,299, instead iPad Air It went from $599 to $749.

Apple isn’t exactly coming off a bad quarter either. In its latest form Earnings releaseThe company called it its “best March quarter ever,” reporting revenue of $111.2 billion for the three months ended March 28, up 17% from a year earlier. It also generated nearly $29.6 billion in net income during the same period, according to it Apple’s financial statements.

This makes Apple’s upgrade look less like a lifeline for a struggling company and more like a way to protect sales without reversing those price increases. The $1,299 MacBook Air is still a $1,299 MacBook Air, but framing it over three years of payments makes the price easier to swallow.

This strategy may be especially effective at a time when more Americans are borrowing and using credit to purchase, and when most households do not have a lot of cash to fall back on. Applications for new credit reached their highest rate in nearly five years in June, according to a bank report Federal Reserve Bank of New York. separate Federal Reserve Survey It found that 37% of adults would need to borrow money or sell something to cover a $400 emergency expense.

That’s the trick behind buy now, pay later – you don’t have to front the cost of the thing, just the down payment.

Paying less is not a lower price

The Apple Upgrade will work more like a car lease than the company’s current financing options. Customers can upgrade early, return the device at the end of the agreement, or pay the remaining balance to keep it. Some of these options may incur additional fees.

Advertised lease terms are 24 months for iPhones and Apple Watches and 36 months for Macs and iPads. Enrollment will require a soft credit check, and the program will be offered through Apple’s website and retail stores.

Apple plans to market the program in lower monthly payments. But paying less doesn’t make the device cheaper. Customers who return it pay for temporary use, while those who want to keep it will still owe its remaining value.

There’s also a catch – it’s said AppleCare won’t be included.

Current Apple iPhone upgrade program Spreads the combined cost of your iPhone and AppleCare Plus with theft and loss across 24 interest-free payments. Customers can upgrade after making the equivalent of 12 payments and trading in their existing phone.

Apple reportedly plans to stop accepting new enrollments in this program and financing its standard iPhone once Apple Upgrade launches. Customers who want coverage will need to purchase AppleCare separately, so the advertised payment will not reflect the full monthly cost.

Not every device will be eligible either. the iPhone 16, Apple Watch SEEntry level iPad and MacBook Neo It was reportedly excluded, along with commercial and educational purchases. This means that the program’s lower payments will primarily help Apple sell its more expensive devices, not make its cheaper products more affordable.

Apple has not officially announced the program. CNET has reached out to Apple and Klarna for comment.

With over a decade of experience, Nelson covers Apple and Google and writes about iPhone and Android features, privacy and security settings, and more.

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