Apple Launches Leasing Program for iPhone and More, but Not in Canada

Apple has officially launched a new hardware leasing program in the U.S., giving customers a new way to get their hands on its latest products with low monthly payments.

In partnership with Klarna, the new program, called Apple Upgrade, allows customers to lease iPhones, Apple Watches, Macs, and iPads directly through Apple. Term lengths range from 12 to 36 months depending on the device, with monthly payments starting from $11.99 US for an Apple Watch or iPad, $17.99 US for an iPhone, and $24.99 US for a Mac.

The service replaces Apple’s previous iPhone Upgrade Program and offers flexible options at the end of the term. Customers can choose to trade in their device for the latest model, pay off the remaining balance to own it outright, or return the hardware and exit the program. Applicants will undergo a soft credit check that does not impact their credit score, and shoppers can stack trade-in credits or earn 3% Daily Cash back when paying with an Apple Card (which is not in Canada).

“At Apple, we put the customer at the centre of everything we do,” said Karen Rasmussen, Apple’s vice-president of the Apple Store online. “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.”

Unfortunately, Apple Upgrade is currently exclusive to the United States and is not available in Canada. But Apple does offer iPhone financing backed by Affirm, which is for outright ownership and not leasing of products.

A direct leasing option from Apple is badly needed in Canada. Currently, Canadian consumers who want low monthly payments on phones are mostly forced to go through telecoms and their upfront or device return programs, which are usually tied to a premium monthly plan.

Having a direct, flexible option straight from Apple would let Canadians set up their new phone with their existing plan, and not be forced into a higher-priced plan from carriers.