There are also reports of a larger collaboration with Klarna Partnership to offer more payment flexibility, with Apple said to be exploring a new way for customers to get iPhones through a monthly lease plan starting at $17.99 a month. Apple has not announced the plans, but the reports have generated plenty of interest among consumers looking for cheaper ways to get their hands on the company’s newest devices.
The Apple iPhone leasing plan is part of a larger trend in the technology industry to offer more and more subscription-like services and flexible financing, rather than asking customers to pay the full price up front.
A Monthly Lease Option Can Lower Entry Costs
Customers will be able to lease specific iPhone models for $17.99 a month, reports say, which could make Apple’s devices more affordable for those who want lower monthly payments.
A lease is a different kind of purchase, because a customer can generally use a device for a period of time, but make periodic payments, he said. The deal finishes with users having the option to upgrade to a new model, return the device or buy it out, based on the final terms of the scheme.
Apple already has finance and trade-in programmes in some markets so a leasing option would be a natural extension to its customer services.
Klarna Might Offer Consumer Payment Options
Klarna is said to also be more proactive in helping customers spread the cost of their purchases.
Klarna is known for its flexible payment solutions, including instalment plans that let consumers pay for their purchases over a number of affordable monthly payments. The reported partnership will give eligible customers access to more financing options, on top of the payment options Apple already offers.
But neither Apple nor Klarna has said how such a deal would be structured.
Subscription Services Keep Growing
The leasing programme is a part of Apple’s bigger push to grow its recurring services.
Recently the company launched subscriptions for entertainment, cloud storage, fitness, gaming and tech support. Another way to improve Apple’s recurring revenue model would be to introduce an iPhone leasing option that would give consumers a better way to upgrade their phones on a regular basis.
It’s far easier for many consumers to subscribe for access to the technology than to make large one-time purchases.
Details unknown will be revealed
The reported starting price of $17.99 a month has certainly grabbed some attention, but many important details are still unconfirmed.
It has not revealed what iPhone models will qualify, whether the programme will be available worldwide, the terms of the contract or whether insurance, trade-in or upgrade benefits will be provided.
Eligibility requirements, credit checks, regional availability and final pricing can also vary based on market variations.
Sources
- Apple Newsroom – Official announcements, product information, financing information and customer programme updates.
- Klarna Newsroom – Official news on partnerships, payment services and financing products.
- Apple – consumer tech and financial partnership coverage.
- Bloomberg – Reporting on Apple strategy, subscription services and tech industry developments.
- Apple CNBC – Business reporting on consumer finance and technology trends in the market
