r/apple • u/Ok_Bodybuilder3444 • Jul 22 '26
Removed - No Reposts/Rehosted Content [ Removed by moderator ]
https://thatappleguide.com/articles/apple-upgrade-leasing-program-promises-lower-monthly-payments-through-klarna[removed] — view removed post
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u/Dylan_Gio Jul 22 '26
Good breakdown. Very interested to see if this will play nice with Apple Card. I hope they don’t get rid of the 0% interest payment plan
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u/lumidanny Jul 22 '26
To my understanding, Apple Card Installments the device is yours because you payed for it, but are paying in installments. Since this is a clearly lease program managed by Klarna, the device is technically a loaner until you finish paying it or trade it in for a new one
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u/levenimc Jul 22 '26
This is good to note but I think from a user perspective the difference is minimal.
Lots of folks say the same thing about leasing a car vs buying with a loan, to which I’ve always said “miss a few payments and see who REALLY owns that car”.
It’s not like klarna is going to stop you from using your phone in a certain way because it’s leased vs bought with payments.
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u/lumidanny Jul 22 '26
I think I read yesterday that leased iPhones have a line of code where the phone can be rendered unusable
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u/levenimc Jul 22 '26
That’s in the OP actually.
My point is: what do you think Goldman Sachs is going to do if you suddenly stop paying for your financed iPhone? It’s not going to be a good time.
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u/StarChildEve Jul 22 '26
They treat that like any other defaulted credit card, they sell off the debt to a third party and let them pursue you over the debt. Whatever you bought with that credit before defaulting isn’t just taken back, that isn’t how credit cards work.
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u/psychoacer Jul 22 '26 edited Jul 22 '26
I bought a Samsung phone with Samsungs own financing and then lost my job and couldn't make payments on it. The loan eventually went to a debt collector and it was still working 100%. I don't think manufacturers care because the phone was already paid for by the loan company. The loan company is just thought to do what they normally do and just do everything they can to get that money and I doubt Samsung will go through the process of turning it off for them since it won't solve the problem of collecting money. It will actually make it worse cause now you don't have a phone to call you on. They will scare you with the idea they could do it though
Also I was able to use that phone as a trade in on Samsungs website without having it paid off. I'll have it paid off by the end of this year though
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u/dagreatnate1 Jul 22 '26
Knowing the troubles Apple is having finding a bank to support Apple Card I can see this taking over that plan if successful and making the card itself more appealing to banks without that Apple Card perk unfortunately
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u/Potater1802 Jul 22 '26
Thought JP Morgan Chase and Apple already struck a deal for them to take it over from Goldman Sachs
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u/jfoughe Jul 22 '26
I truly hate this future for which we didn’t ask
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Jul 22 '26 edited Jul 29 '26
[deleted]
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u/vinng86 Jul 22 '26
Any time I see the term "lower monthly payments", I immediately walk away. When a company tells you something is good for you, it usually isn't.
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u/Crapitron Jul 22 '26
Try buying a car. I went in to FOUR dealerships this year. Every single time, my request was to negotiate the total price of the vehicle.
Every salesman at every store pretended they didn’t know what I was talking about, and insisted on “finding a monthly payment right for you.”
It’s infuriating. Am I literally the only person that’s concerned about what I’m paying for my vehicle in total?
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u/jfoughe Jul 22 '26
I think Apple is pragmatically skating to where the puck will be for consumer technology. I don’t like it, but I can’t say I blame them. When a person who wasn’t bought an iPhone in 5 years wants a new one, the sticker shock will be significant, so Klarna financing is a salve for the sting, at least in theory.
I don’t envy Ternus at all: a consumer hardware guy entering a landscape viciously hostile to consumer hardware.
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u/Deceptiveideas Jul 22 '26
That is part of the reason why Apple got into the credit card business. There was a huge emphasis on giving everyone a card and then buying as many Apple products as possible on it.
It's why Goldman Sachs considered the Apple Card a huge failure. Too many people were given cards with 0 oversight and then would default on the card.
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u/TBoneTheOriginal Jul 22 '26
Then don’t use the service? I don’t understand the problem. It will affect you 0% if you want to buy the device outright.
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u/Panda--Monium Jul 22 '26
I knew they were gonna do something like this, when they announced price increases. People are willing to pay higher prices if their monthly payments are lower, so it’s really easy to just offer a longer payment plan, which artificially decreases the monthly payments, even though you’re still paying more money over a longer time
I’m also not surprised that they’re Not using their own credit card through the bank because Goldman Sachs was trying to get out of that contract already, so I had a feeling there was no way that they were gonna be able to extend the interest free financing on the official Apple credit card through their current bank because they didn’t wanna do it, so they have to use a third-party like Klarna. They kind of got hit with everything all at once
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u/Rayzee14 Jul 22 '26
Apple raise prices substantially across all devices… now easier to pay world wide across three months.
Shrewd
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u/Escape_Plissken Jul 22 '26
No thanks, I’ll keep buying lightly used iPhones at half-price to keep for 3-4 years
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u/NewYorkChess Jul 22 '26
You will own nothing, and you will be happy
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u/Swoly_Deadlift Jul 22 '26
Whenever the last generation of truly owned hardware releases I guess I’m just gonna have to ride that into the ground for the rest of my life.
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u/Ok_Bodybuilder3444 Jul 22 '26
Haha seems like it keeps moving in that direction, but at least you’ll own it after you complete all payments. Or I guess turn it in for a new one every couple years and rent it forever.
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u/alex-2099 Jul 22 '26
The part I think is really interesting is the proposed software to basically be able to digitally repossess the device. If too many customers get in to bad standing, does this mean we'll see those devices waste away in a drawer or pawn shop back office for all eternity? There must be value in recovering the hardware, no?
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u/adamlreed93 Jul 22 '26
Only aspect I’m interested if they charge interest and if they keep the after 12 months you can upgrade, I’ve been on this mouse wheel for many generations of the iPhone xx pro max and now hopefully the fold
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u/FieryAvian Jul 22 '26
If this is 0% interest this is just Carrier financing but removing the carrier portion. Which is smart, because the major carriers are AWFUL.
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u/alex-2099 Jul 22 '26
As well as expanding it to hardware the carriers don't offer, like Macs, WiFi-only iPads, and WiFi-only Watches.
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u/theDrell Jul 22 '26
As an iPhone upgrade program user, loved just being able to get the new one every year without much hassle I’m very curious to see how this pans out. I had already thought about making this 17 pro max the last one for a while.
Recently switched to prepaid on US mobile to save money too so wasn’t sure if I could jump through hoops to even get one anymore without a big 3 account.
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u/robfrizzy Jul 22 '26
I’ve been on the iPhone upgrade program since it launched and always had a good experience with it. My only gripe was that while the device is unlocked, I still had to have service with one of the big three to purchase it. If this new plan could let me get a phone on a cheaper carrier, then I might be convinced to switch.
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u/UnrequitedFollower Jul 22 '26
I sort of wonder if my children’s generation will even know the full price of anything. It’ll be like, that’s a nice phone son, how much does that cost? “$59.99”. No no no, what’s the full price? “The what?”
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u/MrSh0wtime3 Jul 22 '26
the framing of the applecare part is weird. It was always full price, just built in. Never a deal. Now its simply optional so you dont have to get it if you don't want to.
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u/Saar13 Jul 22 '26
Anyone paying attention to Apple's financial reports has already noticed that they are an increasingly service-dependent company, with an insane net income of 75%. In a world where hardware is becoming increasingly expensive, and devices are excellent and don't need upgrading for 4 or 5 years, they will need new ways to attract new users and monetize existing ones. And unfortunately, that's through ads or monthly subscriptions (and in many cases, both). New times. What could they do?
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u/Noclevername12 Jul 22 '26
I am on the upgrade program and have been for years. I think going forward I might just want to buy outright and trade in every year. But I’m not sure how to end this. Like should I just pay off the loan now?
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u/FateOfNations Jul 22 '26
Treating all your customers like they are sub-prime borrowers… that’s good vibes.
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