A new Apple device leasing program is due to launch in the US this month. The new subscription-style device leasing service, named Apple Upgrade, is backed by buy now, pay later provider Klarna and will cover not only iPhones but also Macs, iPads and Apple Watches. 

The expansion to include other Apple devices makes the new program broader than its current offering, iPhone Upgrade Program, and is designed to allow customers to upgrade, buy out or return their devices at the end of the lease.

Apple says the new leasing model will offer lower monthly payments, which could make premium devices more accessible to some consumers. Those taking advantage of the Upgrade Program, however, will need to purchase accidental damage protection separately, should they want it, as AppleCare will no longer be bundled with the plan. 

The financing is reportedly set to be provided by Swedish fintech Klarna, allowing Apple to expand device subscriptions without carrying customer credit risk on its own balance sheet.

The new subscription model means existing finance programs will be phased out. Apple plans to cease offering its current iPhone Upgrade Program and standard financing options to make way for the new subscription offering. 

Not all devices will qualify for the new program with entry level products such as the iPhone 16, entry-level iPad, Apple Watch SE and Macbook Neo reportedly excluded, as are business and education purchases.

The new model has the potential to shift consumer behaviour, with a move away from outright ownership of devices to monthly subscription models drawn by the appeal of more frequent hardware upgrades and affordability.

For Apple, it seems the strategy is designed to stimulate demand following the increase of prices in several of its product categories.

The new program is due to be rolled out in the US from 28 July. If it is successful, Australia could be a likely international candidate for the program as Klarna already operates here, Apple has an extensive retail presence, and the local market is familiar with device financing.