Klarna shares surge 9% on Apple device leasing partnership

Investing.com -- Klarna shares jumped 9% Tuesday after Bloomberg reported that Apple Inc. (NASDAQ: AAPL) will partner with the Swedish fintech company for a new device leasing program called Apple Upgrade.

The program, set to launch July 28, will support most iPhone, Mac, iPad and Apple Watch models, with Klarna serving as the financial backer. Apple shares also ticked higher following the news.

Apple Upgrade will function as a subscription service, allowing users to pay off devices early, upgrade to new models, or keep the device at the end of the leasing period. iPhone and Apple Watch leases will run for 24 months, while Mac and iPad plans will span 36 months.

The program will initially launch in the U.S., available both in Apple’s physical retail stores and online. Users will need to be approved through a soft credit check.

Apple plans to discontinue new enrollments for its current iPhone Upgrade Program and standard financing options to make way for the new initiative. The company will market Apple Upgrade as offering lower payments compared to existing financing programs.

Unlike Apple’s current iPhone Upgrade Program, the new service does not include AppleCare coverage. Certain devices, including the Apple Watch SE, entry-level iPad, iPhone 16 and MacBook Neo, are not eligible for the program. Business and education purchases are also excluded.

The partnership comes after Apple abandoned plans for its own in-house hardware subscription program in 2024. By partnering with Klarna, Apple can offer the leasing service without taking on the financial responsibility directly.

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