Apple is reportedly teaming up with Klarna to let you pay off new devices over time

Apple may be getting ready to let you pay off your next iPhone, iPad, or Mac in installments. The company is reportedly planning to introduce a new financing option called “Apple Upgrade” in the US on July 28 in partnership with Klarna, according to Bloomberg’s Mark Gurman.

Payment terms may vary by device

Gurman says Apple could offer the buy-now, pay-later (BNPL) program for most current iPhone, iPad, Mac, and Apple Watch models, though the specific terms may vary depending on the product’s typical price and expected upgrade cycle. Buyers could get a 24-month payment plan for new iPhones and Apple Watch models, likely reflecting how often people tend to upgrade these devices, while the payment plan may stretch to 36 months for iPads and Macs.

The plan may offer buyers some level of flexibility, allowing them to pay off the remaining balance early, switch to a newer device before their term wraps up, or hold onto their device once they’ve finished paying for it. Cheaper models across Apple’s product lineup might be left out, including the Apple Watch SE, the base iPad, the iPhone 16, and the MacBook Neo.

The current iPhone Upgrade Program is reportedly going away

Apple already offers financing through its iPhone Upgrade Program, which launched back in 2015 and bundles AppleCare+ coverage into monthly payments. According to Gurman, the company plans to stop accepting sign-ups for the iPhone Upgrade Program once Apple Upgrade goes live, effectively phasing it out in favor of the Klarna partnership.

Unlike the iPhone Upgrade Program, Apple Upgrade reportedly won’t include AppleCare+ as part of the base plan. That means anyone financing a new device may need to add coverage separately. Apple hasn’t confirmed any of these details publicly, and pricing for the financing plan and added AppleCare coverage, if any, remains unclear.