TLDR
- Klarna stock jumped 9% Tuesday after Bloomberg reported Apple will use the fintech as financial backer for a new device leasing program called Apple Upgrade.
- The program launches July 28, covering most iPhone, Mac, iPad, and Apple Watch models, with lease terms of 24 or 36 months.
- Apple Upgrade will work as a subscription service — users can pay off early, upgrade, or keep the device at the end of the term.
- Apple will shut down new enrollments to its existing iPhone Upgrade Program and standard financing options to make way for the new service.
- The partnership follows Apple’s decision to shelve its own in-house hardware subscription program in 2024.
Apple and Klarna are teaming up for a new device leasing service called Apple Upgrade, sending Klarna (KLAR) stock up 9% on Tuesday. Apple (AAPL) also moved higher on the news, gaining around 0.82%.
The program is set to launch July 28 in the U.S., available in Apple retail stores and online.
Klarna will act as the financial backer for the program. Customers will need to pass a soft credit check to get approved.
Apple will launch a new U.S. device leasing program called Apple Upgrade on July 28.
The Klarna partnership will cover iPhones, iPads, Macs and Apple Watches, giving customers another way to upgrade while $AAPL looks to accelerate hardware sales.
Source: Bloomberg pic.twitter.com/UI1g91PE25
— Wall St Engine (@wallstengine) July 21, 2026
Apple Upgrade covers most iPhone, Mac, iPad, and Apple Watch models. iPhone and Apple Watch leases run for 24 months, while Mac and iPad plans stretch to 36 months.
Users will have three options at the end of their lease period: pay off the device early, upgrade to a newer model, or simply keep the device.
Apple Scraps Old Programs to Clear the Path
To make room for Apple Upgrade, Apple plans to end new enrollments in its current iPhone Upgrade Program and standard financing options.
Apple will position the new service as offering lower monthly payments than existing programs — though it’s worth noting that AppleCare coverage is not included, unlike the current iPhone Upgrade Program.
Not every device qualifies. The Apple Watch SE, entry-level iPad, iPhone 16, and MacBook Neo are excluded from the program. Business and education purchases are also left out.
Why Klarna?
Apple had previously tried to build its own in-house hardware subscription program, but scrapped those plans in 2024. Partnering with Klarna lets Apple offer the leasing service without carrying the financial risk on its own balance sheet.
For Klarna, landing Apple as a partner is a major win. The Swedish fintech has been expanding its reach well beyond its buy-now-pay-later roots.
Apple’s market cap sits at around $4.80 trillion. Its P/E ratio is currently at 39.53, near its 10-year high of 42.04.
On the insider front, Apple executives sold $87.6 million worth of stock in the past three months, with no insider buying reported during the same period.
Klarna’s stock closed up 9% on Tuesday following the Bloomberg report, while AAPL was up around 0.82% on the day.
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