"No strings attached": Why Apple’s online retail lead says its iPhone 18 Pro leasing model beats wireless carriers

Apple has introduced a new device leasing model called "Apple Upgrade" via Klarna, aimed at competing with traditional wireless carrier promotions for purchasing iPhones. Karen Rasmussen, Apple's vice president of the Apple Store online, explained that this new approach is designed to be "completely unencumbered" and offers more flexibility to customers compared to carrier promotions.

Apple Upgrade now extends beyond iPhones, covering Macs, iPads, and Apple Watches with various term lengths, including 12 and 24 months for mobile devices, and 24 and 36 months for computers and tablets. One notable change is the unbundling of AppleCare+, which is now offered as a separate subscription. The new model also allows for immediate application of trade-in values, lowering monthly payments from the start.

When customers return their leased devices, Apple handles them responsibly, either recycling or refurbishing them for a second owner. This direct return process underscores Apple's commitment to sustainability and gives users more control over the device's lifecycle. While the new Apple Upgrade program may offer flexibility, its cost-effectiveness compared to carrier trade-ins depends on individual upgrade habits.