Apple may unveil a new device subscription service as soon as next week

Apple may be about to revive a plan to offer its devices through a subscription program. Most iPhone, Mac, iPad and Apple Watch models will reportedly be available through the Apple Upgrade service, which could go live as soon as July 28.

The company was previously said to have considered a hardware subscription service before scuttling the idea in 2024. At the time, it was reported that Apple eventually shelved its plans over concerns related to financial oversight. According to Bloomberg, the company is teaming up with Klarna for the Apple Upgrade program. The publication indicated this partnership will enable Apple to offer hardware through a subscription program "without taking on the financial responsibility." The companies already work together, as Apple has offered Klarna as a buy now, pay later option in Apple Pay since 2024.

Apple Upgrade is slated to offer customers some flexibility, albeit with extra fees in some cases. For instance, they'll seemingly be able to upgrade their device to a newer model. Alternatively, it's expected that they can keep the device after the lease period or return it. They'll reportedly be able to pay off the device early during the lease period as well. Leases are believed to last 24 months for iPhones and Apple Watches, and 36 months for iPads and Macs. A soft credit check will be required, according to the report.

Perhaps to streamline its payment plans, the company may stop new sign ups for the iPhone Upgrade Program and standard financing options. The report indicates that Apple Upgrade won't support AppleCare, while devices such as the iPhone 16, MacBook Neo, Apple Watch SE and base iPad won't be eligible.

It's believed that Apple Upgrade will initially be available in the US. It's unclear whether Apple will offer its subscription plan in other markets right away.

Word of the Apple Upgrade program arrives soon after the company hiked the prices of many devices by at least $100, all the way up to a $1,300 increase in the case of the M3 Ultra Mac Studio. Apple is also expected to jack up iPhone prices when it reveals this year's lineup in the coming weeks.

Apple Upgrade might appear to take some of the sting out of those price increases by offering consumers a way to pick up a new device without a single big hit to one's wallet. It could help boost Apple's sales in the wake of the increases and add more recurring revenue to the company's bottom line, in similar fashion to its successful services business. However, buy now, pay later programs often have considerable risks for consumers, such as higher fees for missed payments.