Apple Launches iPhone Leasing Program with Subscriptions Starting at $17.99 a Month
In a move aimed at expanding its user base while easing the impact of rising device prices, Apple has launched a program that allows customers to lease iPhones rather than purchase them outright.
The program, offered through Apple’s Upgrade initiative in partnership with a financial services provider, is designed to give customers greater flexibility in accessing the company’s devices.
According to Reuters, Apple said US customers will soon be able to lease an iPhone for up to two years, with subscriptions starting at $17.99 a month. The initiative provides an alternative to purchasing devices outright as consumers contend with changing prices in the market.
The program operates in partnership with a company specializing in “buy now, pay later” services. Customers undergo an initial credit assessment before choosing to lease a device for either one or two years, subject to the program’s terms and conditions.
Program Covers Multiple Devices
The initiative is not limited to iPhones. It also covers Apple Watches, while Macs and iPads can be leased for two or three years, expanding the options available to customers who want to use Apple’s devices without purchasing them outright.
The program comes just one month after Apple raised prices for entry-level Mac and iPad models by at least $100 amid a global memory shortage.
Price increases on some models exceeded $1,000, prompting the company to introduce new financing options to address changing consumer needs.
Analysts expect iPhone prices to rise further this year, arguing that a leasing model could help Apple shift consumers’ focus away from the high upfront cost of a device toward a lower monthly payment, potentially supporting demand for new products.
Expanding Financing Options
Apple is seeking to broaden the financing options available for its devices, a strategy that investors see as potentially helping to reduce seasonal fluctuations in sales while lowering the company’s reliance on new iPhone launch cycles to drive growth.
The strategy could also encourage customers to upgrade their devices more frequently, particularly as the average iPhone replacement cycle has extended to around four years, according to estimates from a specialized research firm.
Under the program, customers must return the device at the end of the 24-month lease. They can also choose to purchase the phone by making an additional payment or exchange it for a newer model.
The program does not require customers to purchase insurance, while the partner company does not charge late-payment fees. However, the lease is terminated if a customer remains delinquent for more than three months, in accordance with the terms announced for the new program.
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