Apple plans to launch a new device leasing program called Apple Upgrade on July 28 with Klarna serving as the financing partner, according to a Bloomberg report. Klarna (KLAR) stocks rose as much as 3% in midday trade Tuesday to just under $20 following the report, while Apple (AAPL) stocks edged 0.7% higher. The program is expected to gradually replace Apple's existing iPhone Upgrade Program and standard financing options while offering lower monthly payments, according to the report. Keefe Bruyette reiterated its Outperform rating and $26 price target on Klarna, stating the partnership strengthens the company's U.S. merchant growth opportunity. At the time of writing, neither Apple nor Klarna had confirmed the details publicly.
Klarna Stocks Rise on Apple Partnership Report
Klarna stocks climbed in midday trade on Tuesday after the Bloomberg report. KLAR stock was among the top trending tickers on Stocktwits at the time of writing. Keefe Bruyette maintained its Outperform rating and $26 price target on Klarna following the report. According to a note to investors cited by TheFly, the firm said partnering with Apple on the reported leasing program would strengthen Klarna's position with U.S. merchants and deepen its presence in consumer financing.
Apple Upgrade Program Structure and Eligibility
According to Bloomberg, Apple Upgrade is expected to launch on July 28 and will function more like a subscription than a traditional installment plan, covering most iPhone, Mac, iPad, and Apple Watch models. It will be available at Apple's physical retail stores and online, initially only in the U.S. Instead of purchasing a device outright, customers would make monthly payments for eligible devices. At the end of the lease, users could upgrade to a newer model, buy the device by paying its remaining value, or simply return it. Some transactions may also include additional fees, according to the report.
The report stated that lease terms would vary by product. iPhones and Apple Watches would carry 24-month terms, while Macs and iPads would be leased over 36 months. Customers would also need to complete a soft credit check before approval. Unlike Apple's existing iPhone Upgrade Program, Apple Upgrade won't include AppleCare, and several devices are excluded entirely, including the Apple Watch SE, entry-level iPad, iPhone 16, and MacBook Neo. Business and education purchases won't qualify either. Apple is reportedly positioning the service around lower monthly payments and plans to discontinue new enrollments in its existing iPhone Upgrade Program and standard financing offerings.
Retail Sentiment Shifts for KLAR and AAPL Stocks
Both KLAR and AAPL stocks saw an uptick in retail sentiment on Stocktwits over the past day. Sentiment around Klarna rose to neutral from bearish territory, while sentiment around Apple jumped to extremely bullish from the bullish zone. Platform data showed that chatter around KLAR's stock more than doubled in the last 24 hours, while chatter around AAPL's stock rose nearly 200%. Despite Tuesday's rally, Klarna shares remain down roughly 33% year-to-date, while Apple stock has gained about 21%.
FAQ
What did Apple announce about Klarna on July 28?
According to a Bloomberg report, Apple plans to launch a new device leasing program called Apple Upgrade on July 28 with Klarna serving as the financing partner. The program will cover most iPhone, Mac, iPad, and Apple Watch models and will be available at Apple's physical retail stores and online, initially only in the U.S.
How did Klarna stocks perform after the Apple partnership report?
Klarna (KLAR) stocks rose as much as 3% in midday trade Tuesday to just under $20 following the Bloomberg report. Keefe Bruyette maintained its Outperform rating and $26 price target on Klarna, stating the partnership strengthens the company's U.S. merchant growth opportunity.
What are the lease terms for Apple Upgrade?
According to the Bloomberg report, iPhones and Apple Watches would carry 24-month lease terms, while Macs and iPads would be leased over 36 months. Customers would need to complete a soft credit check before approval. At the end of the lease, users could upgrade to a newer model, buy the device by paying its remaining value, or return it.
