Apple has launched a device rental service in the United States that lets users borrow iPhones, iPads, Macs, and Apple Watches for a monthly fee. The move is seen as a strategy to reduce consumer burden from rising product prices and sustain replacement demand.
Apple said on the 28th (local time) that it launched "Apple Upgrade" with payment company Klarna. iPhones and Apple Watches can be rented for 12 or 24 months, and Macs and iPads for 24 or 36 months. Monthly fees start at $17.99 for iPhones, $11.99 for iPads and Apple Watches, and $24.99 for Macs. The iPhone 17 Pro is $31.99 per month, the iPad Pro and Apple Watch Ultra are $24.99, and the MacBook Pro is $38.99.
After the contract ends, users can switch to a new product or pay a lump sum to take ownership of the device. They can also choose to return the device and end the service. A soft credit check by Klarna is conducted during sign-up, but it does not affect the credit score.
The new service replaces the "iPhone Upgrade Program" and "iPhone Payments" previously offered in the United States. Trading in an existing device can lower the monthly payment, and paying with Apple Card earns 3% in Daily Cash. The service is available on Apple's website and app and at offline stores in the United States.
The move is seen as a response to prevent demand from shrinking after raising product prices due to a sharp surge in component costs such as memory. Apple raised MacBook and iPad prices by $100 to $300 last month. The market widely expects the price of the new iPhone, to be unveiled in September, to rise as well.
Meanwhile, Apple returned to No. 1 in global market capitalization for the first time in 15 months the previous day, and during the session its corporate value surpassed $5 trillion for the first time. The stock rose at one point to $342.89, pushing market capitalization to $5.036 trillion, before giving back some gains.