Apple launches iPhone leasing program in US

Apple has introduced a program in the United States that lets customers lease devices for one to three years.

Apple announced Tuesday that it is partnering with payments company Klarna to launch "Apple Upgrade," a program allowing customers to pay a monthly fee to use iPhones, iPads, Mac computers and Apple Watches.

iPhones and Apple Watches are available in 12- and 24-month lease terms, while Macs and iPads can be leased for 24 or 36 months. Starting monthly rates are $17.99 for the iPhone, $11.99 for the iPad and Apple Watch, and $24.99 for the Mac.

For top-tier models, monthly lease rates are $31.99 for the iPhone 17 Pro, $24.99 for the iPad Pro and Apple Watch Ultra, and $38.99 for the MacBook Pro. At the end of the lease term, customers can upgrade to the latest device, purchase the product outright, or return it and exit the program. A soft credit check is required to lease, but Apple said it will not affect the customer's credit score.

The leasing program appears designed to prevent a surge in semiconductor prices — including memory chips — from dampening consumer demand as device prices rise.

Last month, Apple raised prices on MacBooks and iPads by $100 to $300, citing a shortage of memory chips and other factors.

Apple CEO Tim Cook described the price increases as unavoidable, invoking the phrase "a once-in-a-century flood" to explain the situation.

The iPhone was not included in that round of price increases, but market observers widely expect Apple to raise iPhone prices when it unveils new models in September.

Meanwhile, Apple — which reclaimed its position as the world's most valuable company Tuesday after 15 months — saw its market capitalization surpass $5 trillion for the first time during trading. Apple became only the second company in history to reach the $5 trillion mark, after Nvidia.

Apple's share price climbed as high as $342.89, pushing its market capitalization to $5.04 trillion, before giving back some gains and falling below the $5 trillion threshold.