Apple is quietly preparing a financial pivot that could reshape how millions of people buy its most expensive hardware. The iPhone maker is partnering with Klarna, a deferred payment processor, to launch a new lease-to-own program called Apple Upgrade, according to a Bloomberg report. Set to debut on July 28, the initiative marks a strategic expansion beyond Apple's existing iPhone Upgrade plan, offering multi-year payment options for iPhones, iPads, Macs, and Apple Watches. Main Developments Under the Apple Upgrade program, customers can lease iPhones and Apple Watches for up to 24 months, while Macs and iPads will have lease terms extending to 36 months. At the end of the leasing period, users have the option to keep the device, return it, or upgrade to a newer model — hence the program's name. Bloomberg's report notes that some transactions may include an additional fee, though details remain vague. Apple plans to stop accepting new sign-ups for its existing iPhone Upgrade program and will instead channel customers into the broader Apple Upgrade offering. TechCrunch has reached out to both Apple and Klarna for further details. The new program arrives as Apple faces a confluence of challenges: rising hardware prices, supply chain disruptions, and a leadership transition. Read also: Why Tesla's latest robotaxi expansion matters ahead of earnings Background Apple's existing iPhone Upgrade program allowed customers to spread payments over time and upgrade annually. The shift to a lease-to-own model with Klarna broadens that concept to include iPads, Macs, and Apple Watches — devices that historically required full upfront payment or traditional financing. The move comes during a period of acute supply chain pressure known as RAMageddon, an industry-wide shortage of memory chips driven largely by surging demand from AI companies. That shortage has driven up component costs, forcing Apple to raise prices on its hardware. Apple is also navigating a leadership change as new CEO John Ternus takes the helm. The company is simultaneously locked in a legal battle with OpenAI, suing the AI startup for alleged trade theft. These pressures make any initiative that can stabilize or boost sales particularly valuable. Why It Matters For consumers, the Apple Upgrade program makes high-priced devices more accessible through monthly payments stretched over multiple years. But the additional fee — whatever form it takes — means leasing could end up costing more than buying outright. The program also signals Apple's recognition that its customer base may be feeling the pinch of price hikes, especially as memory-chip shortages continue to inflate costs. For the broader tech industry, Apple's partnership with Klarna validates the lease-to-own model as a mainstream financing tool for premium electronics. It could pressure competitors like Samsung and Google to offer similar arrangements, potentially changing how hardware is marketed and sold. What's Next Apple Upgrade is scheduled to launch on July 28, with existing iPhone Upgrade customers expected to be transitioned to the new platform. More details about the additional fees and specific terms will likely emerge as the launch date approaches. The success of the program could influence Apple's pricing strategy for future products, especially as the company continues to grapple with supply chain volatility and a new CEO's strategic direction.