8 hours ago
- Apple announced a new monthly lease program with Klarna, replacing the iPhone Upgrade Program, which is now a true lease rather than a loan.
- The rental model raises privacy concerns as consumers store personal data on devices that Apple and Klarna maintain control over.
- Missed lease payments could require returning the device or paying the full balance, with potential feature restrictions (though Apple denies this).
- Leasing makes expensive devices appear more affordable but can cost more long-term, as illustrated by a MacBook Pro example where the lease total matches the retail price after the term.
- The scheme may trap customers in a cycle of perpetual payments without ownership, benefiting Apple's bottom line, which reached $5 trillion market value.
- The new plan excludes AppleCare+, adding extra costs for consumers, and reflects a broader industry trend toward subscription models.