Apple introduces lease option for iPhone inviting customers to buy now and pay later
No money, no problem.Apple just announced that starting July 28, customers will no longer be forced to pay for their products up front.The tech giant will be rolling out Apple Upgrade, a leasing program for products with the help of Klarna — a buy now, pay later (BNPL) platform.This newer leasing option is set to replace the iPhone Upgrade Program, with more devices and a new pricing structure.Customers will be able to lease a variety of pricey items like iPhone, Apple Watch, Mac, and iPad on the Apple Store online, in the Apple Store app, and at Apple Store locations in the US.
Options include either 12- and 24-month leases for iPhone and Apple Watch, and 24- and 36-month leasing options for Mac and iPad. “At Apple, we put the customer at the center of everything we do,” said Karen Rasmussen, Apple’s vice president of the Apple Store online in a press release.“And we’re thrilled that Apple Upgrade offers our customers, both online and in-store, a more flexible way to pay for the products they love,” Rasmussen added.The program is unique as when you purchase an item in full, you are the owner.
However with leasing, customers do not own the products.Users are only paying to use the product.
Then, at the end of the leasing agreement, folks can either return, upgrade to a newer model, or purchase it with a one-time payment.Here’s how it works: customers choose a device like select iPhones, iPads, Macs, and Apple Watches.They then pick a lease term: Customers will then pay a monthly lease payment starting at:Once the term is up, folks have a few options.
They can either trade in the current device, and if eligible, its trade-in value can reduce your monthly lease payment.To be enrolled, customers will be asked to complete a soft credit check.No security deposit is required, and the first monthly payment is due 30 days after the selected device is shipped or available for pickup.
Apple said that monthly payments are based on the device and the leas...