Apple Launches Official iPhone Rental Programme Starting at Under £300 per Month
Jakarta, CNBC Indonesia — Apple has launched a new programme allowing customers in the United States to rent an iPhone for up to two years at a cost starting from US$17.99, or around Rp 325,000 per month.
The programme, named Apple Upgrade, is the result of a partnership between Apple and Klarna, a buy now, pay later provider. Apple will offer the scheme both in its physical stores and its official online store.
Customers who pass a soft credit check can choose a rental period of one or two years for the iPhone. Apple also offers similar options for the Apple Watch, whilst Macs and iPads can be rented for two or three years.
Under the rental scheme, the device must be returned after the 24-month period ends. Users may purchase the device with an additional payment, or swap it for a new model.
Apple stated that the programme requires no deposit. Klarna also does not charge late fees, but will terminate the rental contract if a customer falls behind on payments for three consecutive months.
The instalment amounts vary depending on the device model. For example, the unlocked iPhone 17 Pro costs US$31.99 per month on a two-year contract, or US$45.99 per month on a one-year contract.
However, not all Apple products are included in the programme. Some devices, such as the iPhone 16 and MacBook Neo, are not covered by the Apple Upgrade scheme.
The programme’s launch comes just one month after Apple raised the prices of iPads and Macs by at least US$100, with some models seeing increases of more than US$1,000. Analysts expect Apple to raise iPhone prices this year as well.
The rental scheme is viewed as Apple’s way of shifting consumer attention away from higher upfront device prices towards lower monthly payments.
“Most Apple consumers, especially in the US and other mature markets, buy devices through instalments or trade-in programmes, so we can expect far more aggressive offers,” said IDC Senior Research Director Nabila Popal, quoted by CNBC International on Wednesday (29/7/2026).
Apple has indeed been seeking new ways to sell iPhones through staggered payments. Investors have long believed this strategy could help reduce seasonal sales fluctuations and the company’s dependence on new product launch cycles.
The new programme could also encourage consumers to replace their devices more quickly. According to Bernstein’s estimates, the average iPhone replacement cycle has now stretched to nearly four years.
Since Apple announced the price increases in June, analysts have continued to speculate about a potential upcoming iPhone price rise. Morgan Stanley estimates Apple may need to raise the price of the iPhone 18 Pro by around US$200 to maintain its gross profit margin.
Meanwhile, TechInsights estimates that rising memory and other component costs could add up to US$300 per unit to iPhone production costs.
Apple is also expected to push premium device sales even harder. Several analysts predict the company will introduce a foldable phone alongside the iPhone 18 Pro line-up in September, at a price estimated to reach around US$2,500.
Compared with previous programmes, Apple Upgrade offers far lower costs. Through the iPhone Upgrade Programme, which includes AppleCare protection, customers currently pay more than US$42 per month over 24 months with financing from Citizens Bank.
With the new scheme, Apple will compete more directly with mobile carriers such as AT&T, Verizon, and T-Mobile, which have long offered device instalments and trade-in subsidies to attract customers into long-term service contracts.
Apple also still offers interest-free financing through Apple Card Monthly Instalments. Meanwhile, Apple Pay users can access short-term loans through Klarna and its competitor, Affirm.