Apple plans device leasing program to boost sales, Bloomberg reports

• The leasing program, branded 'Apple Upgrade', will debut on July 28 in the United States
• The initiative aims to boost Apple's sales by offering customers a leasing option as an alternative to outright purchases
• Bloomberg reported the news based on information from people with knowledge of the matter

Apple Plans Device Leasing Program to Boost Sales

Key Development:

Apple is set to launch "Apple Upgrade," a new device leasing program in the United States on July 28, according to Bloomberg News citing sources familiar with the matter.

Program Details:

The initiative represents Apple's strategy to stimulate sales through a leasing model, allowing customers to access Apple devices through a subscription-based or rental arrangement rather than traditional purchases. Specific pricing details and eligible devices were not disclosed in the report.

Market Implications:

This move signals Apple's shift toward recurring revenue models, similar to its successful services segment. Device leasing programs can:

• Lower the barrier to entry for premium-priced Apple products
• Create predictable revenue streams through subscription payments
• Encourage more frequent device upgrades among consumers
• Potentially boost customer retention and ecosystem lock-in

The timing suggests Apple may be responding to longer device replacement cycles or seeking to compete with carrier-based upgrade programs already in the market.

Strategic Context:

As hardware sales face potential headwinds from economic uncertainty and market saturation, Apple continues diversifying its revenue model beyond one-time device purchases. This follows the company's expansion into services like Apple Music, Apple TV+, and Apple Card, which have become increasingly important to its financial performance.

Notable Date:

Launch date: July 28

The program initially launches in the U.S. market only, with no information provided about international expansion plans. Further details on pricing structure, eligible products, and lease terms are expected closer to the launch date.