Apple is giving its products the car-lease treatment after hiking prices

Apple is getting into the leasing business. Michael M. Santiago/Getty Images Apple's new leasing program offers access to its products via monthly payments lower than traditional financing to own. The program — called Apple Upgrade — acts like a car lease. It runs via the BNPL platform, Klarna. The new financing option arrives in the wake of Apple hiking hardware prices as memory costs increase due to a shortage. Apple has a new way to lower the monthly cost of financing its devices: Don't buy them, lease them. On Tuesday, the company announced a new program, called Apple Upgrade, in partnership with the buy now, pay later platform Klarna. It's like a car lease, just for new tech: The new program lets customers lease an iPhone for a monthly payment rather than financing the full purchase price. It's cheaper for shoppers on a monthly basis: a base iPhone 17e through Apple Upgrade costs $17.99 a month, while financing the same phone to own is $24.95 a month. Shoppers can opt for a one- to two-year lease for iPhones and Apple Watches starting at $11.99 — while Macs and iPads offer a two- or three-year lease. Macs start at $24.99 a month, while iPads start at $11.99 a month. Monthly pricing quickly rises for top-end models. Leasing an iPhone 17Pro Max with 2TB of storage starts at $58.43 a month. At the end of the leasing cycle, shoppers can return the tech to Apple or pay the remaining cost to keep the hardware. Apple will either recycle or resell returned devices, depending on their condition. As part of the new rollout, Apple also said it is discontinuing its $42 a month iPhone Upgrade Program in the US. Apple Upgrade arrives amid rising hardware prices across tech companies, driven by a global memory crunch . In June, Apple hiked MacBook and iPad prices , including increases of $100 to more than $1,000 depending on the model. It also comes as shoppers are holding onto smartphones for longer . Apple is widely expected to raise iPhone prices in September when it launches its new lineup. For shoppers considering Apple Upgrade, it's worth considering how often you actually replace your iPhone and whether it's worth adding another monthly payment to your budget. The program may appeal to customers who reliably want a new model every year or two and care more about lowering their monthly payment than owning the device. But people who typically keep their phones for several years may be better served by buying one outright. Klarna also requires a soft credit check to enroll — and AppleCare coverage are not included in the base prices, so if you want more peace of mind on accidental damage, be prepared to pay more than the listed monthly price. Read the original article on Business Insider