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Apple to Offer Buy Now, Pay Later Plans in Partnership with Klarna

Apple is partnering with Klarna to introduce buy now, pay later plans for iPhones and other devices starting July 28, as the company responds to rising hardware prices.

Apple is launching a buy now, pay later program with Klarna starting July 28 to help customers finance new iPhones, Macs, and other devices. The move comes after Apple hiked hardware prices by $100 or more in June, citing unsustainable cost increases. The program allows for 24- or 36-month leasing terms, though some analysts warn that BNPL programs can lead to consumer debt.

Apple is partnering with Klarna to launch a new buy now, pay later (BNPL) program for its hardware, a move signaling that rising prices are beginning to impact even the most premium tech brands. The new service, set to launch July 28, will be available for "most" iPhone, Mac, iPad, and Apple Watch models, offering customers a way to finance their upgrades over time.

The program will allow customers who clear credit checks to "lease" new iPhones and Apple Watches for 24-month periods, or new Macs and iPads for 36-month cycles. Customers will have the option to pay additional fees to keep the hardware at the end of the billing period or enter a new lease for the latest upgrades. This marks a significant shift for Apple, which has traditionally avoided third-party financing for its entire ecosystem.

A Response to Market Pressure

The move comes just weeks after Apple hiked prices on some of its most popular products by 100ormoreinJune.TheMacBookAir,forinstance,jumpedfrom100 or more in June. The MacBook Air, for instance, jumped from 1,100 to 1,300,whilethepopularMacBookNeoincreasedfrom1,300, while the popular MacBook Neo increased from 600 to $700. Outgoing CEO Tim Cook described the situation as "unsustainable," stating he had "never seen anything like it in any area in over 40 years."

These price increases are part of a broader trend affecting the tech sector. Microsoft also raised the price of its flagship Xbox Series X to 800,a800, a 300 increase from its 2020 launch price, and introduced similar interest-free financing plans. However, unlike Microsoft, Apple is not one of the tech giants currently responsible for the AI arms race fueling chip and memory price inflation, leaving them at the mercy of the market.

The Risks of BNPL

While the interest-free financing offered by Klarna sounds attractive, it is not without risks. BNPL programs are profitable to companies like Klarna only if some portion of people get caught with outsized bills at the end of the repayment period. Apple's move is a clear signal that the cost of hardware is becoming a significant barrier to adoption, forcing even the world's most valuable company to adapt its sales strategy.