Apple Retires iPhone Upgrade Program For Klarna-Backed Leases (macrumors.com)
- Reference: 0184740450
- News link: https://mobile.slashdot.org/story/26/07/28/2121200/apple-retires-iphone-upgrade-program-for-klarna-backed-leases
- Source link: https://www.macrumors.com/2026/07/28/apple-upgrade-program-klarna/
> Apple Upgrade has lower base prices than the iPhone Upgrade Program, with iPhones available starting at $17.99 per month and the Apple Watch available starting at $11.99 per month. Macs can be leased starting at $24.99 per month, and iPads start at $11.99 per month. AppleCare+ is optional and not included in the lease price, with customers also able to opt for AppleCare One. There are 12-month and 24-month leasing options for the iPhone and Apple Watch, along with 24-month and 36-month leasing options for the Mac and iPad. Lease cost varies based on device, and is lower with a device trade-in that's applied on a monthly basis. [...]
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> When leasing an iPhone, customers are required to choose a plan from AT&T, Verizon, or T-Mobile, and prepaid plans are not eligible. iPhones need to be leased with a carrier plan, but the iPhones are unlocked so customers can switch carriers if desired. MVNOs like Mint Mobile or Visible are not supported. At the end of the leasing period, customers can choose to return the device and exit the program, pay off the remaining amount owed on the device with a one-time payment and keep it, or return it and upgrade to a new device with a new lease.
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> The payoff amount is the difference between what was paid during the leasing period and the retail price of the device, minus any remaining trade-in credits. Klarna is not charging a fee for the leasing program, so an iPhone that's $1,099 can be leased and then purchased for $1,099 with no extra cost beyond taxes. As with trade-ins, Apple will send a pre-labeled and prepaid shipping box for device returns or upgrades. If you don't opt to pay the purchase fee at the end of the leasing program, you will not own the device and must return it.
Last week, after [2]Bloomberg reported on Apple's upcoming leasing program, 9to5Mac uncovered code in the iOS 27 beta suggesting the company was developing a system that [3]could restrict leased iPhones when customers fall behind on payments. Apple has now [4]told The Verge that the new "Restricted Mode" will not be activated in response to a missed lease payment. What the new system is actually meant for remains unclear.
[1] https://www.macrumors.com/2026/07/28/apple-upgrade-program-klarna/
[2] https://hardware.slashdot.org/story/26/07/22/1958256/apple-partners-with-klarna-to-offer-iphones-macs-on-a-subscription-basis
[3] https://apple.slashdot.org/story/26/07/22/2050240/ios-27-code-suggests-apple-could-restrict-leased-devices-after-missed-payments
[4] https://www.theverge.com/tech/972063/apple-upgrade-program-no-restricted-mode
I remember when the phone companies (Score:3, Interesting)
would lease land-line phones and this practice was seen as predatory, especially toward vulnerable populations such as the elderly.
Re:I remember when the phone companies (Score:5, Informative)
The problem then was the lack of choice in the matter. If you wanted a landline, you had to lease the phone from them. I'm not going to try to dissuade you of feeling that this is also predatory, as it can be. It's just for other reasons, and ultimately avoidable if one wishes.
Re: (Score:2)
That's the neat thing - they haven't stopped doing this! The subsidized phone price the carriers give you when signing up is priced into the service plan. If you don't upgrade again when you're eligible (perhaps because you're elderly and don't follow the promotions), that's now all gravy for the carrier.
Re: (Score:2)
Also, if they found you were using an extra line or a phone not authorized for that line...they'd confiscated the phone cord AND phone!
This was a plot point in an episode of Kolchak The Night Stalker. "The Knightly Murders" (Season 1, Episode 11)
It was based on an actual event which made national news.
Just when you think that Apple... (Score:1)
...couldn't get any worse, they figure out the worst possible option
I guess it makes sense
Re: (Score:2)
Functionally, there is little wrong with this offering. You're not paying more than the price of the phone. The final payment at the end is roughly equal to the trade-in value of the phone at the time. As such, opting to upgrade would function similarly to trading the phone in. It's not as good as some of the carrier upgrade options, but that isn't unique to Apple.
In my opinion, the biggest problem with this plan is the fact that you're locked into signing up for one of the big three post paid plans. The p
Sleazy (Score:2)
I'm surprised that Apple would climb into bed with the predatory pack of sleaze balls that is Klarna. I cannot see this accomplishing anything beyond reputational damage.
Re: (Score:2)
Once the supply of customers flush enough to buy under more standard arrangements is saturated you are basically left between ignoring the demand for growth forever or deciding between handling...subprime...customers yourself or keeping the arrangement at arm's length.
This 'restricted mode' that Apple is vigorously denying will be used for lease enforcement suggests that the metaphorical arm is not that long and that Apple seems to be doing more than merely being willing to sell devices to whatever resel
Re: (Score:2)
> This 'restricted mode' that Apple is vigorously denying will be used for lease enforcement suggests that the metaphorical arm is not that long and that Apple seems to be doing more than merely being willing to sell devices to whatever resellers.
My guess would be the restricted mode might be something the prepaid carriers wanted. It is a fairly common thing for people to get a Metro by T-Mobile or Total Wireless iPhone to give to their kid as an inexpensive substitute for Apple's now discontinued iPod Touch. This would certainly nip that in the bud.
Brought to you by the letter K (Score:1)
Lower-end MacBooks, leasing programs ... Apple can see the writing on the wall. The economy is splitting along an increasingly firm class divide, and they'd like a foot in each. They'd be fools not to pursue this. And they'll see subscription income from both ends. Because it's easier to stomach a payment than a lump sum.
One more step.... (Score:3)
One more step towards the future business wants us all to inhabit, when you'll own nothing and you'll be thankful to have found a way to access whatever it is. Frak 'em.
Klarna? (Score:2)
Klarna sounds like a crypto scam.
Re: (Score:2)
Swedish buy now, pay later scheme.
Re: (Score:3)
> Swedish buy now, pay later scheme.
But will the iPhone come disassembled in two cardboard boxes with a set of perplexing instructions?
Re: (Score:3)
I find these Ikea jokes funny. But I never understood why such have started at all. Ikea boxes and manuals are superb examples of thoughtful engineering. Never have I ever had any issues.If you can't do a shelf with such instructions, what job in today’s world is suitable for you? What can you do? Not much. Following such instructions is 4th grade playful Lego assembly joy for adults. If you can't do that, you have no place even in a construction site, where buildings get assembled with a bit less cle
Re: (Score:2)
> But I never understood why such have started at all.
1. The number of parts that make up something you might assume would be rather simple, for example - a dresser, is more than most people anticipate.
2. Sometimes after taking inventory of the parts, people procrastinate on the actual assembly process and parts go missing in the interim.
3. In order to not have to translate the instructions into multiple languages, the instructions are entirely pictographic. That's fine until you're dealing with parts that have to go in a certain orientation or look similar t