Can’t Afford to Buy a New iPhone? Apple and Klarna will Lease you One Instead

[Foxbat]

Apple is partnering with Klarna to make it easier for more customers to use Apple's latest technology. Instead of buying your new iPhone outright, or paying monthly in installments, Apple will lease you a new iPhone for less money per month.

After the 12-month (or 24 or 36) lease period is up, return the old phone and get the new one, with possibly the same lease amount. If you want to keep the same phone, you can continue to pay the monthly rent, but if the new phone is the same price, why wouldn't you want the new shiny?

Apple Upgrade - Lease iPhone, iPad, Mac, Watch

Introducing Apple Upgrade, a new way to always have the Apple products you love. Lease a new iPhone, iPad, Mac, or Apple Watch with low monthly payments.

www.apple.com

I am not the target audience for this, but I wonder how many people will do this instead of buying? Also, I'm sure the Carriers who subsidize their services with iPhones may not like it if users don't lock themselves in to their contracts.

I'll be curious to see how popular this is (plus, will Apple be open about their numbers) and will this open up a whole new round of more expensive phones since the lease is available to bring users in at a lower price point.

Also, I should point out that this isn't just for iPhones, but Macs, Apple Watches, and iPads, too. We have Software as a Service, so why not Hardware as a Service, too?

 

[comfortably_numb]

Are the phones unlocked? Can you use the dual esim functionality?

The only way I'd ever utilize this option is if the phone is fully unlocked.

 

[Foxbat]

Are the phones unlocked?

I would ask Apple, but they should be. The Fine Print did say you can't use this program with a Pre-Paid Carrier:

For iPhone only: In order to lease an iPhone, you must select an eligible carrier (but you cannot use a prepaid carrier plan).

Also, they said that this new program replaces the existing Apple Upgrade plan that was in place. I think TheForce was using that previously.

 

[comfortably_numb]

The Fine Print did say you can't use this program with a Pre-Paid Carrier

Then it's a hard pass for me. Apple isn't going to force me to use one of the "Big 3."

That leads me to believe the devices aren't really unlocked it you can't use any carrier you want.

I'll keep buying my phones outright.

 

[klang]

I've been using the iPhone annual upgrade program for years and I have liked it. New phone every year makes me happy at much less cost then buying one outright every year. It is not a matter of being able to afford the phone. I simply like the convenience.

Although I specify AT&T as my carrier the phone Apple ships me is not locked. I have experimented with a few other carriers via esim and works just fine.

Curious to see how this plays out as I am a member of the previous program.

 

[comfortably_numb]

Although I specify AT&T as my carrier the phone Apple ships me is not locked. I have experimented with a few other carriers via esim and works just fine.

If that turns out to be the case with this new program I might be tempted, but don't want to be a guinea pig..

 

[klang]

If that turns out to be the case with this new program I might be tempted, but don't want to be a guinea pig..

I have tested both Mint and Visible on my phones in addition to my existing AT&T service in the past couple years with no issues. I was testing to see which service had the better coverage in the mountains where I spend a lot of time. None was a standout either way.

It is possible they might change something.

 

[Foxbat]

I was testing to see which service had the better coverage in the mountains where I spend a lot of time

Have you used the Satellite mode for sending SMS messages when cellular reception isn't available? I was able to use it out in the middle of Lake Michigan earlier this month. It's not a replacement for service, but nice to have just in case.

Since you're currently in the Apple program, I expect that you will be contacted with details about the new plan.

 

[TheForce]

I think @TheForce was using that previously.

Never. Always purchased. Sometimes I space it out on Apple Card for the 3% cash back if offered. Been upgrading in 3-4 years, mostly for new technology and features.

Update- I decided to wait on upgrading to the new iphone 18 Pro Max. Reason, My 15 PM is doing OK and found a different way to conserve storage. I also want the latest faster processor.

 

[Foxbat]

Never. Always purchased. Sometimes I space it out on Apple Card for the 3% cash back if offered.

That must have been what I was confused by. I always buy, too, as I use a prepaid carrier and the unlocked phone gives me the ability to change carriers if desired.

When I upgraded my iPhone 13 to the 17, I looked at using the Apple Card payments, but it wasn't available with my Boost plan.

 

[klang]

Have you used the Satellite mode for sending SMS messages when cellular reception isn't available? I was able to use it out in the middle of Lake Michigan earlier this month. It's not a replacement for service, but nice to have just in case.

Since you're currently in the Apple program, I expect that you will be contacted with details about the new plan.

Yes I had to use it once to request medical assistance for one of my hikers who had fallen.

I use a Garmin GPS device for most trail needs, they make a version with satellite communications built in but I didn't bother with that feature as it is built into my phone.

No idea how many others have used the iPhone upgrade program but I agree , I should hear from Apple soon.

 

[comfortably_numb]

If Apple is going to limit people to the "Big 3," then why wouldn't someone just upgrade their phone with their carrier? You get a new device and you own if after payments. Not sure what the incentive would be to use this instead of that?

 

[Juan]

Apple is partnering with Klarna to make it easier for more customers to use Apple's latest technology. Instead of buying your new iPhone outright, or paying monthly in installments, Apple will lease you a new iPhone for less money per month.

After the 12-month (or 24 or 36) lease period is up, return the old phone and get the new one, with possibly the same lease amount. If you want to keep the same phone, you can continue to pay the monthly rent, but if the new phone is the same price, why wouldn't you want the new shiny?

Apple Upgrade - Lease iPhone, iPad, Mac, Watch

Introducing Apple Upgrade, a new way to always have the Apple products you love. Lease a new iPhone, iPad, Mac, or Apple Watch with low monthly payments.

www.apple.com

I am not the target audience for this, but I wonder how many people will do this instead of buying? Also, I'm sure the Carriers who subsidize their services with iPhones may not like it if users don't lock themselves in to their contracts.

I'll be curious to see how popular this is (plus, will Apple be open about their numbers) and will this open up a whole new round of more expensive phones since the lease is available to bring users in at a lower price point.

Also, I should point out that this isn't just for iPhones, but Macs, Apple Watches, and iPads, too. We have Software as a Service, so why not Hardware as a Service, too?

Is it rent to own? Because if it isnt that's a huge scam

 

[comfortably_numb]

Is it rent to own? Because if it isnt that's a huge scam

There's a buyout clause, but the default is to send it back after the 12 or 24 months and they send you the next upgrade.

 

[TheForce]

When I upgraded my iPhone 13 to the 17, I looked at using the Apple Card payments, but it wasn't available with my Boost plan.

When I got my wife the 17, I wanted to use the 0% interest and 3% cash back I saw offered but by the time we decided to purchase the 0% interest went away. So I just paid cash. Also, they have that hidden expense that you have to buy the protection plan when you make time payments. That may not be worth it depending on personal risk factors.

 

[Juan]

There's a buyout clause, but the default is to send it back after the 12 or 24 months and they send you the next upgrade.

But dont u get trade in credit when you buy new?... in otherwords cheap upgrades

 

[cp2k]

The way I see it this is more for the techie who upgrades very frequently, and is willing to look at the cost of a device as a continuous bill that you always pay like your water bill, power bill, etc. You pay the bill each month, indefinitely pretty much, and in exchange you always have access to a device that is only 2-3 years old at the oldest.

Is it a good deal? That's left up to the consumer. Looking at the MacBook Air for example, you can "lease" the 15 inch model for $28.99 for 36 months. That would be roughly $1,043, or about $456 cheaper than buying it outright. If you decide you want to keep it at the end of the lease you pay that $456, and can keep, trade in the device, etc.

I see it as more of a combination between a lease program and a layaway program. At the end of the lease if you want to upgrade you could see what the trade in value would be on the device, and if the trade in or resell was more than that $456 you could buy out the lease and trade in/sell it.

If it's less, and you want to upgrade then, you've still ended up with a good deal because you'll mail it back, get a new device, and have saved the $456 by not buying outright.

 

[Foxbat]

But dont u get trade in credit when you buy new?... in otherwords cheap upgrades

Like every buying decision, you have to crunch the numbers to decide which method is acceptable for your situation. If you don't mind not owning your phone and paying a fraction of what the normal purchase price would be, maybe it would work out better for you. If you end up with a box full of old cellphones, maybe giving it back at the end of the lease saves you from having the hassle of this clutter.

Me, I trade in. Instead of constantly paying twice to use the phone (one payment for the service, the other to Apple or CC company), it's just the monthly prepaid service fee for me.

 

[cp2k]

Me, I trade in. Instead of constantly paying twice to use the phone (one payment for the service, the other to Apple or CC company), it's just the monthly prepaid service fee for me.

This is a good point too. From an environmental standpoint this is a win for Apple because they get an influx of devices they can sell through their refurbished programs, or for recycling.

 

[comfortably_numb]

Instead of constantly paying twice to use the phone (one payment for the service, the other to Apple or CC company), it's just the monthly prepaid service fee for me.

And think of how much money you're saving by using prepaid over one of the big three postpaid carriers. Unless you're financing a phone through one of the big three, there really is no reason to use them anymore. Wonder if there's some sort of payoff to Apple by the big three in order to keep people from using MVNO's on this new lease program. The payoff must be worth it versus the number of customers they would get who want to continue to use prepaid.