[DigitalToday intern reporter Seung-a Yoo] Apple is expected to start a new program, Apple Upgrade, as early as the 28th, offering major iPhone, Mac, iPad and Apple Watch models on a subscription basis.

Bloomberg reported on July 21 that Apple is preparing to reintroduce a hardware subscription program in partnership with financial services firm Klarna.

The program appears to revive Apple's hardware subscription plan that it shelved in 2024. Apple was previously reported to have dropped the plan due to burdens tied to financial oversight, but this time it chose a structure that reduces that burden by working with Klarna. Bloomberg reported that the partnership has allowed Apple to "offer hardware subscriptions without taking on financial responsibility directly". Apple and Klarna have worked together since 2024 on a buy now, pay later payment option in Apple Pay, and the new partnership would extend that relationship to hardware sales.

Apple Upgrade is expected to offer broader options than a simple installment plan. Users are expected to be able to switch to a newer device during the contract period and to keep or return the device after the lease ends. Early repayment during the lease period is also reported to be possible. Leases are likely to be 24 months for iPhones and Apple Watches and 36 months for iPads and Macs, and a simple credit check is expected to be required during sign-up.

Not all products will be included. Bloomberg's Mark Gurman (마크 거먼) said the iPhone 16, MacBook Neo, Apple Watch SE and base-model iPad could be excluded from Apple Upgrade. AppleCare is also expected not to be supported under the program. This has raised the possibility that Apple could stop new sign-ups for its existing iPhone Upgrade Program and standard financial products. It is seen as a move to simplify the payment system.

The United States is the most likely launch market, and it is still unclear whether it will expand immediately to other markets.

The market is paying attention to the program as it coincides with Apple's recent device price increases. Apple recently raised prices on multiple devices by at least $100, and the M3 Ultra Mac Studio rose by as much as $1,300. Price increases are also expected for this year's iPhone lineup that Apple is set to unveil within weeks, and Apple is also scheduled to launch new high-end iPhone Ultra and MacBook Ultra models, which is expected to further increase the overall cost burden of purchases.

In this situation, Apple Upgrade could be a way for consumers to get new devices without the burden of a large upfront payment. For Apple, it could also be a channel to defend sales after price hikes and increase recurring revenue like its services business. On the other hand, consumer risks are also being raised because buy now, pay later-type programs can increase fee burdens in the event of delinquency. If the launch goes ahead, the scope of eligible devices, the fee structure and whether Apple winds down existing finance programs are expected to be key points to watch.