Klarna (KLAR) reaches equipment leasing deal with Apple, shares rise 9%

Highlights

Phase-out of existing projects

Apple plans to end its existing iPhone upgrade program and registration channels for traditional financing solutions to accommodate the newly launched Apple Upgrade rental service.

Klarna's strategic choice

Apple has previously tried to develop its own hardware subscription platform, but terminated relevant efforts in 2024. By partnering with Klarna, Apple can offer leasing options without having to bear its own financial risks.

According to Bloomberg News, Apple has selected financial technology company Klarna to provide financing for its new equipment rental program Apple Upgrade. Klarna's share price rose 9% on Tuesday.

The program will be officially launched on July 28 and will cover most iPhone, Mac, iPad and Apple Watch products, with a lease period of 24 or 36 months.

The Apple Upgrade service runs on a subscription model, allowing customers to settle early, replace new equipment, or keep their current products after the lease period ends.

To advance this new service, Apple plans to stop accepting new registrations for existing iPhone upgrade plans and traditional financing solutions.

This cooperation stems from Apple abandoning its internal hardware subscription plan in 2024.

The newly announced partnership between Apple and Klarna involves a device rental platform called Apple Upgrade, which sent Klarna's shares up 9% during Tuesday's trading session. Apple shares also climbed, rising about 0.82% on the day.

Klarna Group plc, KLAR

The new rental service is scheduled to be fully launched in U.S. retail stores and Apple's online store on July 28.

Klarna will serve as the financing services provider for the plan. Interested customers need to go through soft credit inquiry to obtain qualification approval.

Apple will launch a device rental program called Apple Upgrade in the United States on July 28.

The partnership with Klarna will cover iPhones, iPads, Macs and Apple Watch, providing customers with more upgrade options, and Apple also hopes to accelerate hardware sales.

Source: Bloomberg pic.twitter.com/UI1g91PE25- Wall St Engine (@wallstengine) July 21, 2026

The Apple Upgrade program covers most iPhone, Mac, iPad and Apple Watch models. Rental agreements for iPhone and Apple Watch are for 24 months, while agreements for Mac and iPad are extended to 36 months.

After the lease expires, participants have three options: pay the remaining amount to own the equipment, replace it with a newer model, or keep the current equipment.

Phase-out of existing projects

As part of its transition to Apple Upgrade, the technology giant will stop accepting new users into its existing iPhone upgrade plan and traditional financing options.

The company will promote the new platform as offering a lower monthly fee than previous options-but note that unlike existing iPhone upgrade plans, AppleCare protection is not included.

Some equipment is not eligible to participate. Apple Watch SE, basic style iPad, iPhone 16 and MacBook Neo are excluded from the rental plan. Procurement by enterprises and educational users is also not applicable.

Klarna's strategic choice

Apple has previously tried to develop its own hardware subscription platform, but terminated relevant efforts in 2024. By partnering with Klarna, Apple can offer leasing options without having to bear its own financial risks.

For Klarna, adding Apple to the customer list was a major achievement. The Stockholm-based financial technology company has been expanding its business beyond its original buy-first-pay-later service.

Apple is currently valued at approximately US$4.80 trillion, with a P/E ratio of 39.53, close to its ten-year high of 42.04.

In terms of insider trading, Apple executives sold $87.6 million in stock in the past quarter, and no insider purchases were recorded during the period.

Klarna's share price closed up 9% on Tuesday after Bloomberg disclosed the news, while Apple's gain was about 0.82% that day.

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