Apple Changes the Rules: Shifting to Device Rental Model
The tech giant is launching a new initiative that shifts from device ownership to a monthly rental model, with prices for popular products starting at just $11.99.
Apple is launching a new initiative in the United States, with plans to expand the move to Europe, seeking to change how consumers purchase its products. The company is introducing a program called Apple Upgrade, under which customers can acquire devices via a monthly leasing model, similar to rental agreements common in the automotive industry.
Unlike previous financing programs, where customers paid in installments and gained ownership at the end, the new program treats the product as a rental for a defined period. At the end of the contract, the customer can return the device to Apple, upgrade to a new model, or pay a final amount to keep the device.
The new program significantly expands the scope of the previous iPhone Upgrade Program. It is expected to include a wider range of products, including iPhones, Apple Watch, Mac computers, and iPads.
Apple presents this move as a way to lower monthly costs for consumers. Prices start at $17.99 per month for an iPhone, $11.99 for a smartwatch or iPad, and $24.99 per month for a Mac. The commitment period varies by product: 12 to 24 months for iPhones and watches, and 24 to 36 months for Mac computers and iPads.
The program will be managed and financed by the Swedish payment company Klarna, replacing the previous model that relied on banking entities. This follows Apple's discontinuation of its independent Buy Now, Pay Later service due to stricter credit regulations in the United States.
Through Apple Upgrade, Apple aims to encourage customers to move from purchasing a device every few years to a model of fixed monthly payments and more frequent upgrades. This move may strengthen the company's recurring revenue and increase device replacement rates. While Apple plans to expand this model to Europe, it has not been reported whether Israel will be included.
