Apple’s Upgrade Program will allow you to rent an iPhone without the sticker shock

There’s now a new way to own an Apple product. Starting today in the US, you’ll be able to rent an iPhone, iPad, Mac, or Apple Watch directly from the company through its new system Apple upgradeAnd the program.

Powered by Klarna, rental prices for Apple products will start at $18 per month for a year iPhone And $12 per month for Apple watchWith 12 and 24 month rental options. If you are in the market for iPad or Macyou’ll likely keep this device for a longer period, and Apple offers 24- or 36-month leasing options for these devices.

You can explore different options either online or through an Apple Store, or you can go to a physical Apple Store in person. If you have an existing device that you want to replace, you can also reduce your monthly rental costs.

The leasing program will likely come as welcome news to anyone who’s been overwhelmed by the idea of ​​buying an Apple device outright — especially right now. Just last month, Apple suddenly raised prices For all its devices because Ramageddonan industry-wide memory shortage that is driving up prices for not just Apple products, but all consumer electronics. This came shortly after Apple CEO Tim Cook described the price rise as “inevitable.”

The price hike is also expected to impact upcoming launches, including the iPhone event rumored to take place in September. If Apple unveils a new foldable iPhone, as expected, it will likely be more expensive than any current models, just as expected. Samsung foldable More expensive than its other flagship phones.

The rental program can be a popular strategy at a time when many families are struggling with the cost of living. Offsetting higher component costs is a major financial challenge for Apple at a time when people are becoming more price sensitive, said Dipanjan Chatterjee, vice president and senior analyst at Forrester.

“Having already raised prices, Apple has limited room to push them higher without extending upgrade cycles,” Chatterjee said. “The new leasing program is a smart response: It doesn’t reduce the price of an iPhone, but it changes how consumers perceive cost by replacing sticker shock with a predictable monthly payment.”

Apple says signing up for the program is easy and can take just a few minutes. Klarna will run a simple credit check on applicants which will not affect their credit score.

At the end of the rental period, customers will be given the option to return their device, purchase it outright for a small fee, or upgrade.

Katie Collins

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Katie is a news reporter and feature writer based in the UK. Officially, she is CNET’s European correspondent, covering technology policy and big tech companies in the EU and UK. Unofficially, she works as Taylor Swift’s correspondent at CNET. You can also find her writing on technology for good, ethics, human rights, climate crisis, robotics, travel, and digital culture. She was once described as a “living vehicle” by the London newspaper Evening Standard due to having a microchip injected into her hand.

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