- Apple will launch a deal with Klarna next week, allowing US customers to spread out device costs up to three years.
- This brings Apple closer to a full subscription model for hardware, software, and services, though AppleCare requires extra payment.
- Some products are excluded from the arrangement, including MacBook Neo, Apple Watch SE, entry-level iPad, and iPhone 16.
- The Klarna arrangement comes as Apple faces AI-driven memory price inflation, aiming to make products available to cash-strapped consumers.
- IDC analyst notes the scheme helps protect the upgrade cycle as prices rise, with iPhone price increases expected in September.
- Apple has invested in convincing customers of subscription payments, with over 1 billion paid subscriptions and 2.5 billion devices installed base.
- The products are effectively leased, giving Apple a stronger grip on end-of-life devices for refurbishment, resale, and recycling.
- The partnership with Klarna helps manage risk, as Apple abandoned its own buy-now, pay-later scheme due to rising bank rates.