Apple’s Upgrade Program Gives It More Control Over iPhone Customers

Apple’s new Upgrade Program lets customers lease an iPhone, Mac, iPad or Apple Watch and pay monthly over a fixed term of 12 to 36 months. Klarna provides the financing. At the end of the lease, customers can return the device to Apple at no charge or buy it for the remaining value.

TechRadar’s Nirave Gondhia argues the program extends Apple’s influence over how customers buy phones, a shift that began with the original iPhone. Before its launch in 2007, mobile carriers had more control over which phones were sold and promoted, device branding, preloaded apps and software update schedules. The article says Apple releases updates to all its phones globally at the same time.

The first iPhone’s strong consumer interest helped Apple reverse that relationship, the article says: carriers sought to stock the phone. Its original price was $499 or £269, making it the most expensive phone at the time, according to the article. Gondhia says Apple’s program offers customers a more flexible way to pay, without adding to the product’s outright purchase price, while giving Apple greater control of the customer journey. The article describes the program as available only in the US at the time of writing.