- Apple is partnering with Klarna to allow US customers to subscribe to Apple hardware with payments spread across up to three years, moving closer to a full subscription model including Apple One and Creator Studio, but excluding AppleCare.
- The products are effectively being leased, giving Apple a stronger grip on end-of-life devices for refurbishment, resale, and recycling, strengthening its position in the lucrative second-user market.
- The Klarna deal comes as Apple is forced to raise product prices due to AI-driven memory price inflation affecting the economy.
- IDC analyst Francisco Jeronimo said Apple Upgrade arrives at a critical moment because rising prices on Mac, iPad, iPhone, and the new foldable could impact the upgrade cycle.
- Jeronimo noted that reframing a device as a low monthly payment protects upgrade cadence and allows Apple to market products as device-as-a-service, an approach no other vendor has achieved.
- Apple chose Klarna to avoid credit risk, having shelved its own Apple Pay Later scheme. Jeronimo said backing with Klarna captures demand without taking credit risk onto Apple’s balance sheet.
- Apple has been moving toward hardware-as-a-service for almost a decade, as predicted by a Forrester analyst, and the combination of changed customer habits and external threats now aligns for such models.
Apple's new Klarna partnership marks a significant shift towards a subscription-based model for hardware, allowing users to lease devices over three years. This initiative comes as Apple faces rising product prices due to AI-driven memory inflation, with analysts noting the importance of maintaining the upgrade cycle.12
"Apple Upgrade lands at precisely the moment Apple needs it," said IDC analyst Francisco Jeronimo. He highlighted that the new leasing model protects the upgrade cadence and positions Apple uniquely in the device-as-a-service market.67
The arrangement excludes certain products, including the iPhone 16 and MacBook Neo, which Apple considers affordable enough for direct purchase. This strategy not only enhances customer access to Apple products but also strengthens the company's grip on end-of-life devices for refurbishment and resale.34
Additionally, the partnership mitigates risk for Apple, which had previously planned to launch its own buy-now, pay-later scheme. By collaborating with Klarna, Apple can capture demand without assuming credit risk. As consumer habits evolve, the stars align for hardware-as-a-service models, a concept Apple has been gradually adopting for nearly a decade.910
Overall, this move reflects Apple's ongoing transformation into a service-oriented company, combining hardware, software, and services into a cohesive subscription offering.
“Payments are spread across up to three years for US customers, though AppleCare is not included in the subscription. IDC analyst Francisco Jeronimo noted the timing is critical as rising prices on Mac, iPad, iPhone, and the new foldable could impact upgrade cycles.”
Computerworld
