Apple is reportedly working on a new financing model for its hardware. "Apple Upgrade," in partnership with Klarna, is said to offer lower monthly payments and is scheduled to launch on July 28th. However, for customers in Germany, Austria, and Switzerland (DACH region), the catch lies in the details.
Apple has been expanding its financial services for years – from the Apple Card and installment payments to the iPhone Upgrade Program in the US. Now, Bloomberg reports on another component: a leasing offer called "Apple Upgrade," which the company is expected to launch this month. The recent change of Apple Card issuer and the question of a launch in Germany have demonstrated just how dependent such programs are on individual partner banks and markets. This market dependency will also determine the success of "Apple Upgrade" in Germany.
How "Apple Upgrade" is supposed to work
According to the report, Apple is partnering with payment provider Klarna for the program; a minor credit check will reportedly be conducted before purchase. "Apple Upgrade" is said to function "like a subscription" and will cover purchases of iPhone, iPad, Mac, and Apple Watch. The contract durations will vary depending on the device category: 24 months for iPhone and Apple Watch, and 36 months for Mac.
During the contract period, users will be able to pay off the device early, upgrade to a new model sooner, or keep it at the end – in certain cases for an additional fee. Similar to a car lease, the device can also be returned at the end of the contract. Unlike the iPhone Upgrade Program, "Apple Upgrade" will not include AppleCare coverage. According to the report, Apple is explicitly promoting the offer as a way to achieve lower monthly payments compared to existing financing options. Apple is expected to discontinue new enrollments for the iPhone Upgrade Program at the same time as the new program launches.
Which devices should be excluded?
Not every model will be eligible for financing through "Apple Upgrade." According to the report, the Apple Watch SE, the entry-level iPad, the iPhone 16, and the MacBook Neo will be excluded. This suggests that Apple is focusing the program on higher-priced and newer devices - those where extended payment plans are most advantageous for both customers and the company. The reported launch date of July 28th also falls within the weeks leading up to the expected new iPhone generation, with rumors already fueling anticipation for the iPhone 18 Pro.
What the report means for Germany
Herein lies the crucial point for German-speaking countries: The iPhone Upgrade Program, intended to partially replace "Apple Upgrade," was never available in Germany, Austria, and Switzerland – it currently exists only in the US, UK, and China. Those who purchase Apple hardware on installment plans in these countries do so through Apple's regular financing options with partial payments or through retailers, not via a leasing and exchange model like the one used in the US.
One detail makes the case interesting for the DACH region: Klarna, a payment service provider long established in German online retail, is involved. This removes at least one structural hurdle. However, a market launch outside the US is not confirmed – the report explicitly mentions a US launch, and Apple itself has not yet commented on "Apple Upgrade".
Apple's funding strategy is being reorganized
If the report is accurate, "Apple Upgrade" would be more than just a new payment option: The shift from an iPhone-focused program to a leasing model encompassing iPhone, iPad, Mac, and Apple Watch would demonstrate Apple's intention to broaden and strengthen customer loyalty to its hardware. Whether and when this will reach the DACH region (Germany, Austria, and Switzerland) will likely only become clear after the reported US launch on July 28. (Image: Shutterstock / Parilov)
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