Gurman: Apple Set to Launch Device Leasing Program ⇥ macrumors.com

Joe Rossignol, MacRumors:

Apple and Klarna are partnering on a new “Apple Upgrade” program set to launch in the U.S. on Tuesday, July 28, according to Bloomberg’s Mark Gurman.

The program will allow you to finance most iPhone, iPad, Mac, and Apple Watch models, with a 24-month term for iPhones and Apple Watches and a 36-month term for iPads and Macs. Customers will be able to pay off the device early during the term, upgrade early to a newer device, or keep or return the existing device after the term.

In 2017, working with McKinsey, Apple said its supply chain would eventually become a closed loop, without specifying a timeframe or even a firm methodology for how it might do so. Perhaps encouraging people to treat devices as leased objects exchanged every few years gets closer to this goal, as Apple can capture a greater number of sold devices. (Be honest: how many of you have a bunch of old products sitting around unused? There is gold in them thar hills.)

Then again, the other thing I thought about is the rising cost of components, and the negative effect increasing prices could have on new purchases. Spreading the cost out over monthly payments might make some people feel less burdened by a dramatically pricier new Mac — something like what has happened with car sales. In the United States, for example, the most common way to purchase a new car is increasingly through financing, which divides the purchase price into monthly payments with added interest. Because the cost is divided up, it means manufacturers can increase prices and buyers can be pulled into longer and costlier payment plans.

Apple, of course, already has financing options for its new product purchases — Affirm in Canada, and a slew of options in the U.S. — as it has rapidly become a bank. If a large enough number of new Apple product buyers choose financing instead of outright purchases, it could incentivize more expensive products and longer payment plans. If you read that and got excited, you probably own lots of Apple stock.