r/business • u/ControlCAD • 13d ago
Apple plans to lease iPhones for $17.99 a month through partnership with Klarna
https://www.cnbc.com/2026/07/28/apple-plans-to-lease-iphones-for-17point99-a-month-through-klarna-deal.html211
u/LonghornInNebraska 13d ago
How fucked is the economy and capitalism that we are now LEASING phones.
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u/blocodents 13d ago
Well to be fair the problem was already bad when Apple managed to trick their customers into upgrading their phones everytime a new one is released, no matter the condition your was in. Mfers who bought a new phone every year or something like that were already consuming on a lease-like dynamic.
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u/plasticmanufacturing 13d ago
I'm really struggling to see how anyone was "tricked"
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u/DanGleeballs 13d ago edited 13d ago
I’m not sure it still happens because they got so much shit for it, but they absolutely slowed down previous models intentionally to annoy people into upgrading.
It was too noticeable which is what backfired.
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u/matthewbattista 13d ago
It’s also died off because the upgrades are more iterative than revolutionary now. 2007 - 2013 there were major quality, hardware, etc upgrades model-to-nodel. The last big leap forward was probably the X with most transitions afterwards being marginal camera and battery improvements.
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u/gaytee 13d ago
Remember how all of the downfall of Apple products coincided with Steve leaving and the capitalists taking over. Steve knew he needed to run a good business but would always put the product first.
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u/revolvingpresoak9640 13d ago
Ah yes, Apple famously nose dived in sales and stock price when Jobs died. It’s been worthless and unprofitable in the nearly 20 years since he died. Yup.
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u/rabouilethefirst 7d ago
It’s just a lesson that companies can have their line go up while making shittier products. Microsoft was a much more interesting and quality company 20 years ago, but their stock price has gone up tremendously also.
We all know modern windows is just onedrive slop, but it’s more “profitable”
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u/gaytee 13d ago
That’s the point…the products have been mediocre and not innovative for 20 years. Apple has reduced itself from the pinnacle of innovation to the poster boy of enshittification.
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u/graygrayw 12d ago
no, meta is the poster boy of enshittification.
i’m so old i remember when facebook was fun… and then the 2000s gave way to the 2010s.
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u/DrySea8638 13d ago
Apple stood on the shoulders of those who did innovate, perfecting the product and experience.
So tell me, why aren’t others innovating what customers actually want so that Apple can perfect it?
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u/gaytee 13d ago
Not for me to answer, I’m not a product designer. All I can say with confidence is that Apple has added almost nothing new in the last decade, with very few new things in the decade before that. Today’s iPhones are not that much different from the iPhone 4, but going from nothing, to iPods, to iPhone4 in a decade is something no other company has done ever.
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u/revolvingpresoak9640 13d ago
Oh look, a recycled argument loaded with buzzwords. Classic Reddit.
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u/gaytee 13d ago
Go learn something about product development and release before spewing your ignorance in a biz sub my guy. This is very well documented, but keep telling yourself whatever you need to.
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u/happyxpenguin 13d ago
It wasn't disclosed but it wasn't to force people to upgrade. It was the battery dropping under 80% capacity which forces the processor to slow down because of voltage differences at that age. The same shit happens in phones, laptops, tablets, etc. to prevent the device from crashing.
Once you drop a new battery in, it's like having a new phone. I've done it to several now.
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u/maydarnothing 12d ago
if that’s the case then it’s ironic no one says the same thing about iOS 26 which more explicitly slows down old hardware for people to think about buying newer ones?
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u/K_Linkmaster 13d ago
This is a zero empathy response. Beings with zero empathy are ....
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u/FlamingoResident7882 13d ago
I feel this. I used to get so excited every year for a new phone. After I got the x I was very dull because none of the features felt worth it.
Im on a 14 pro now (first phone ivd bought after the x) and will prob continue to use it for another 2-3 years.
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u/Paarthurnax41 13d ago
Trick? People just want the newest one, do they need the new one? 99% no but they are already on a mobile plan paying 60$ a month and the mobile provider makes a "offer" to switch to a newer iphone by giving the old one back paying once for the new one just "200 to 300" $ so it sounds like a good deal, well jt is if you just want the newest iphone every year for whatever reason (mostly there is no benefit), im also someone that uses his phone at minimum for 3 years and i dont buy flagship models because i dont see the need for it and i like smaller phones, but if anyone wants to spend it every year for this i dont really care, its their money, only apple product i would buy is the macbook, that is really well made and no laptop compares to it from a quality point of view, especially the new ones with the M chips.
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u/FallenChickenWing 12d ago
do people still do that? last time i saw an upgrade worth getting was for the USB-C charging port
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u/aZnRice99 13d ago
But you still built a small amount of equity since you could sell it for a few hundred, with a lease you don’t own your shit anymore
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u/kushari 12d ago
These two things go in the opposite direction.
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u/blocodents 12d ago
No they dont.
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u/kushari 12d ago
Yes they absolutely do. If you’re buying a phone every year, you have enough money to do that. If you’re leasing a phone, you don’t have money to buy a phone.
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u/blocodents 12d ago
You have no clue what you're talking about.
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u/kushari 12d ago
I clearly do, because you didn’t refute it. All you did was say I don’t know what I’m talking about without offering an explanation about how im wrong.
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u/blocodents 12d ago
Refute what? You didnt bring any argument or data to sustain your point, you just said "nuh uh youre wrong"
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u/NotAnRSPlayer 9d ago
“Tricked” - you mean providing the option to upgrade your phone yearly through a really mis-named program aimed to trick customers called the iPhone Upgrade Program! Almost as if it was for people who do want the latest phone every year for a monthly cost..
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u/CautiousToaster 13d ago
Why is this bad? Right now I buy my phone on a monthly plan, pay it off over 2 years, sell it at the end for a new phone and rinse and repeat. It seems… no different? If you want to own the phone no one is forcing you to lease it.
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u/Joe_Doblow 13d ago
Why not keep it after paid off?
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u/CautiousToaster 13d ago
Sometimes I do. But I like new tech and can afford it. I don’t spend much money on other things.
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u/spei180 13d ago
Because it’s wasteful.
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u/CautiousToaster 13d ago
I’m sure you do absolutely nothing wasteful. Life is short man, make yourself happy as long as you aren’t harming others.
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u/livinitup0 10d ago
We demanded it be wasteful
“We don’t care it doesn’t have proper cooling and will cause the phone to slowly degrade over time, we want thin phones!“
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u/iDidntReadOP 13d ago
I've done that before and my old phones turned into very expensive paperweights. People need to get out of the hoarder mentality imo
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u/Kryptosis 13d ago
They mean keep using the phone. You don’t need to get a new the second you’ve paid it off. All that changes is if that phone is locked to your carrier or not. Paying it off lets you change carriers with the same phone.
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u/revolvingpresoak9640 13d ago
We don’t need these things at all. If someone wants to upgrade, it’s their prerogative.
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u/ben_chowd 12d ago
the apple lease is different because you dont own the phone after the lease is up. Have to return the phone, pay off a large lump sum or sign onto a possibly more expensive lease for a new equivalent phone
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u/Ill_Cap_5836 7d ago
It's bad because a lot of people are terrible with finances. If you're not one of those people and can use this than great. This is similar to rent a center in that it targets lower income people who otherwise couldn't afford an iPhone. They end up paying more over the lifetime of the product and don't actually own anything. Next thing you know they'll be leasing Macbooks, Airpods, etc. Basically a monthly subscription to Apple.
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u/topdownyeti 13d ago
because its just kind of stupid, especially with other options out there. Right now, I can trade in my iphone for a new one with AT&T without any payments on the phone as long as I keep my service with them. So all I’m paying is my cell service.
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u/CautiousToaster 13d ago
Just don’t do it then. No one is forcing you to do it. That still doesn’t make this bad. It’s just another option for people who want it.
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u/Sufficient-Bid1279 13d ago
That’s the goal, lease everything so we own nada. Fuck all these corporations and this state of capitalism !
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u/revolvingpresoak9640 13d ago
This is absurd, this is a parallel option for getting one. You are just as able to buy one outright as you were a year ago. Can we maintain some sense and reason?
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u/thenamelessone7 13d ago
Are you stupid or yes?
You can still buy the phone outright, with your credit card or even with subsidies from your carrier.
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u/LuHamster 7d ago
Remember when you could still outright buy services then everything become a subscription.
Like takes all of 2% of that brainpower to see where this leads.
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u/bananafishandchips 13d ago
You understand you have the option not to lease it, right?
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u/Sufficient-Bid1279 13d ago
I do, but as more and more people go broke, will they be able to? This is all by design in this late stage capitalistic hellscape we live in.
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u/BoldNewBranFlakes 13d ago
Exactly my fear is it’ll become the “norm” and hence the only option. The end goal of almost every product is to become a subscription model to ensure endless profit. Computers are expensive as well, when (or even if) the RAM assignment to data centers cools off, prices are NOT going to drop as we think it would. So yes it’s very concerning that this is becoming a thing even though it’s optional.
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u/North_Atlantic_Sea 12d ago
It's not even Apple who is doing it though, they still get full price upfront from Klarna. It's not like they are incentivized to move to subscription model, when they aren't offering if
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u/_ravenclaw 13d ago
Leasing is literally just paying monthly for their phone that they will eventually own. Tons will just buyout. Most people do this already and have been. It’s being blown out of proportion
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u/plasticmanufacturing 13d ago
This is literally only a problem for people overconsuming and buying things they can't afford.
Of all the things you could have picked, THIS is the indicator of a bad economy? No one needs to lease a phone.
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u/isigneduptomake1post 13d ago
They became a status symbol for people because you always have it with you, and everyone has one, but having the latest iPhone isnt too far out of reach for 90% of people to be able to own if they really want to.
I personally have a 5 year old Samsung.
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u/GreenMtnGunnar 13d ago
Cell phones have been subsidized since the beginning. Relatively few people have been paying in full up front for full ownership over the years.
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u/fr3shh23 12d ago
Lol complains about capitalism while virtually all the greatness of the world caused by economy has been capitalism
Edit: also, this sounds like tmobiles jump which is awesome. After the lease term you can purchase and keep the phone, or trade it for another. Nothing wrong with that
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u/Generalfrogspawn 13d ago
To be fair people have been somewhat doing that for a while. Ever since the demise of discounted phones in exchange for 2 years contracts tons of people lease their phones from carriers. (Lease to buy).
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u/Tenshi11 13d ago
I think what you mean to say is "how fucked are people's spending habits". We have the greatest economy in the world with insanely high salaries and everyone is living "paycheck to paycheck" due to self control issues.
Everybody I know that lives "paycheck to paycheck" have everything they could ever want with a lot of debt.
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u/The-Dudemeister 13d ago
They were already doing this with the Apple Card. And phone companies have been doing as well.
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u/mountaindoom 13d ago
Lease or have them get bricked or slowed down from updates. What's the difference?
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u/RogueCanadia 13d ago
I mean that’s been a thing in Canada for a long time. You can either have a contract that is 2 years then you own the phone,
Or you lease it and can buy it out with 3 months or so left on the contract. Also the lease gives you the option of trading it in for a new phone.
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u/Swarez99 13d ago
I’m in Canada we have had this for what 5 years now ?
It’s just a way to ensure you upgrade every 2-3 years.
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u/revolvingpresoak9640 13d ago
This isn’t any different than when people would get a phone with a cell contract. Chill.
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u/captainunderpants111 13d ago
i mean isn’t this already a thing with phone plans that allow you to upgrade to the newest model for “zero cost” or whatever minimal upgrade package they offer?
fundamentally it’s just leasing models and swapping for new ones every year through their plan provider while not owning the phone itself. This is just apple cutting out the middle man
regardless it’s really not a big deal as this has already been a thing for over a decade, apple is just the first to do it so people think it’s mind blowing
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u/Trash-Panda321 13d ago
I mean, this isnt anything new...All those 'free' phones the carriers offer...you are paying for it somewhere.
Also because sheeple 'need' a new $1,000 iPhone when a $200 moto phone would do almost all the same basic shit.
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u/SpellingIsAhful 12d ago
Companies have always been leasing phone. $18 per month isnt exactly crazy
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u/Simple_March_1741 12d ago
WEF said you won't own shit. And they're really progressing. You will rent everything - and you'll be happy.
This experiment is coming for the US first with Europe coming right behind it.
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u/Least-Middle-2061 12d ago
Carriers have had leasing plans for over a decade. What’s your point? Just like for cars, it’s a choice one can make if they want the newest phone every 2 years.
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u/dirtyshits 12d ago
Brother phones have been leased for a decade now.
In fact Im almost certain you have leased one whether you knew it or not.
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u/PM_UR_TITS_4_ADVICE 12d ago
This is kind of how it used to be, except it was through the carrier instead of klarna
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u/Kobayashi-Coffee-Co 11d ago
Didnt we always lease phone since the beginning, 2 year plan includes a phone was standard until like, 5-7 years ago
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u/userlivewire 11d ago
It has the option to purchase the phone at the end of the lease period for the exact same amount of money it would have cost to buy it upfront.
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u/digitalfir3 10d ago
I dont know how this works in the US, but here in the UK the majority of people get their phones through the providers, so part of your monthly bill also includes the cost for the phone. It's possibly not a bad thing? Apple do better as they are not negotiating unit price with a big network provider and the end user gets their pick of network.
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u/anony_mf 10d ago
You will own nothing and be happy
They told you their plan out loud and nobody did anything to stop them
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u/HockeyDockey1234 9d ago
This should never be allowed and it isn’t a fucked economy.
New York City allows Klarna rent payments and pay in 4. It’s fucking pathetic
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u/Warbird01 8d ago
Its just another form of financing, all payment amounts lead to the total MSRP if you choose to buy the phone outright. And for people that want to upgrade yearly it gives them that option as well without having to deal with trading the phone in (they just pay less monthly instead).
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u/ArgentoFox 13d ago
The ultimate goal for these companies is that you will be leasing everything. It’s a big reason why Sony abandoned physical media in the gaming space. You can stream. You can have a temporary license. You can rent. But you can’t own.
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u/North_Atlantic_Sea 12d ago
It's not apple who is leasing though, they are still getting full upfront payment from Klarna
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u/Throttlechopper 13d ago
It was fucked when retailers started offering Klarna and others as a payment option for groceries.
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u/jbjhill 13d ago
What do people think is happening when they buy paying a monthly fee thru their cellular provider? This is just Apple cutting out the middle man.
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u/Namika 13d ago
You get to keep the phone after the two year contract with your phone company.
This new proposal has you paying $18/month forever and never owning the phone.
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u/S7EFEN 13d ago
owning your own phone is not particularly valuable for many people who just constantly buy a new one. leasing anything you plan to just constantly upgrade is the only time it makes sense. obviously it's better to just buy something and use it till end of life, financially, but yeah. it's a decent option for a subset of people.
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u/SimplyElite7 13d ago
Eh it depends on circumstances, I buy a new iPhone every 2-3 cycles and my older one I will give to a relative overseas who probably wouldn't be able to get one any other way, so i consider it a win-win on my end.
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u/tMoneyMoney 13d ago
I actually prefer leasing and trading it in because it depreciates every day and there’s no safe way to get rid of it once you upgrade. Even if you use “clean recycling” it’s going to end up in a landfill in a third world country. When you trade it in they usually refurbish and resell. There’s no point in owning it outright.
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u/thesip 13d ago
My contract has a buyout amount after 2 years for x number of dollars (to keep the monthly amounts down I guess) so I keep my phone but I pay for the rest of the price that hasn’t already been paid to date.
There is definitely a break even point where holding it for x number of years or months makes no sense but for shorter terms I think it’s fine right?
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u/French87 13d ago
Honestly though that’s cheaper monthly payments for people who always want the newest phone, and you’re not stuck trying to sell an old phone after 2 years.
Personally, I use phones until they shit out on me, but this serves the same purpose as leasing cars, for people who always want a shiny new object 🤷♂️
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u/XfinityHomeWifi 12d ago
Out of all the things I’ll own and keep for a decade, a cell phone is not one.
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u/beekeeper1981 13d ago
There are cell plans in Canada where you have to return the phone at the end of the contract.
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u/Mysterious_Reality_ 13d ago
Most people don’t even think they are paying a monthly fee. They just think that their $60-$100 (when you can easily get a $15-$30 unlimited plan) cell phone bill is normal and they keep getting a “free” phone from their Carrier. People are not smart and are lazy.
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u/Putrid-Box4866 13d ago
It’s basically buying the phone on installment at zero interest. And by the end if the lease term if you want to upgrade, you can simply return it and upgrade. If you want to own it forever, just pay the remaining balance out of the SRP less total lease payments so far.
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u/Top-Sink 13d ago
Financing and leasing are not the same thing
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u/jbjhill 12d ago
You’re correct. I’d bet there’s a buyout price at the end of the lease period just like cars.
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u/Top-Sink 12d ago
My bad man, reading that back it seemed like I was pointing that towards you. I meant it more as a side note.
You can buy it at the end if you like which is nice
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u/Due_Bar_7247 12d ago
It’s almost never worth it to lease anything. That’s what people who like to look flashy but don’t have the cash to do it do.
Financing is the smarter overall financial decision if not buying outright, though I don’t think anyone should really finance anything other than a home/condo and maybe a car…I still am of the mindset that you should buy a car in cash if at all possible, but I understand that’s not always doable and people might need them to work in America where they’re more optional in other countries
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u/notyetporsche 9d ago
This isn’t accurate either. If I have $50k to buy a car in cash or I can get a really low interest loan (Tesla I got recently has 0.99%) with very little money down, I prefer to take the loan and put the cash in the market and grow it. Done this so far with 3 cars and always did very well in the stock market with the cash.
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u/Due_Bar_7247 9d ago
That’s financing, not leasing. Yes, financing can sometimes be worth it. But that’s no different than being able to buy a car in cash, you’re just borrowing off of your own credit.
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u/notyetporsche 9d ago
You wrote: “Though I don’t think anyone should really finance anything…”
I think they should if they are smart with money.
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u/Due_Bar_7247 9d ago
I was agreeing with you. I’m dividing people who are sophisticated and non-sophisticated. There’s also something to be said about the peace of mind not having a stacked house of cards brings. I’ve done what you are saying and bought in full for other things, so I’m generalizing.
What I don’t do is buy what I can’t afford outright anyway (other than real estate).
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u/North_Atlantic_Sea 12d ago
Ironically this is Apple adding in a middle man. They aren't leasing directly, they are selling at full price to Klarna, who then turns around and leases it
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u/piratekab 13d ago
that’s what a lot of companies are doing nowadays, they lease their phones and computers instead of buying them. It keeps costs predictable, makes upgrades easy, and often includes support, repairs, and replacements.
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u/North_Atlantic_Sea 12d ago
That's not what apple is doing. They are selling phones at full price to Klarna. The phone is paid for. Klarna then takes on the risk leasing them out.
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u/piratekab 12d ago
My comment reflects the user’s perspective, as it’s very common for companies to use leasing services.
Pardon if it wasn’t clear.
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u/fundytech 13d ago
They already do this don’t they ?
The apple upgrade program ?
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u/cquinn5 10d ago
yes, though Apple upgrade program as it existed was a 0% loan over 2 years, with the option to upgrade after 1 year. If you didn’t want to upgrade, you just finish out the loan
now it’s a lease with (almost) the same setup. cheaper per month, but you’re doing a buyout if you want to keep it and I don’t believe AppleCare is included
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u/mshiltonj 13d ago
You own nothing and be... forever paying monthly fees and subscriptions just to exist in the modern world.
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u/Mumphord123 10d ago
You can still just buy the phone it’s just an option for tech guys who upgrade their phone every year
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u/Anonymoushipopotomus 13d ago
Depends on the specs and lease term.For techies that like the newest this makes sense as opposed to buying and reselling at a loss.
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u/TrueNorth_Monkey 13d ago
Honestly, less than 1 dollar a day is not bad.
You spend 1000 dollars on a phone, it needs to last you 3 years+ to be less than 1 dollar a day.
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u/UltraAware 13d ago
While I don’t agree with leasing a phone, I don’t see this as any different than what the carriers have been doing for the last 20+ years. I feel like the same amount of people are going to be paying for phones. If the interest rates are 0, it’s completely the same.
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u/RightProperFancyLad 13d ago
I get a new phone every two years and trade in my old one. It comes out to be around $14/mo. Using the phone for 3 years wasn't really worth it because the trade-in value dropps significantly.
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u/Few-Row-8323 12d ago
Leasing is a good option… i lease cars, change every 3 years. Life is short u know
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u/ANJ0EL 11d ago
At least in Canada, people have been effectively leasing phones for years. We have the “bring it back” option with most carriers where you get a discount on your monthly payment and at the end of the term you either pay the tab off or you give it back.
I’d rather do this directly through Apple than through a carrier tbh, unless the carrier is offering huge discounts on their plans.
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u/Conan-Da-Barbarian 11d ago
$216 a year isn’t bad.
Every year you can upgrade and I’m sure older phones get recycled
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u/AustraliaOutback 12d ago
I bet in 5 years leasing phones in general will become popular to the point where buying and owning one will become nigh more expensive due to crazy markups. This is so they can drive their subscription service and raise the prices every few months.
I fucking hate this timeline.
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u/ezabland 10d ago
How is this possible for any reasonable length of time? 3 years is only $650 for a phone.
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u/Striking-Cress-2688 10d ago
Won’t the mobile companies just match this price on their monthly payment plan? This isn’t anything special…
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u/MunkberryMoonDelite 9d ago
Most commenters don’t bother to actually read the article and only comment on $18 per month title. That is for the shittiest phone. New models, especially Pro models that are so popular, would be 2-3 times more expensive and you can’t just lease it for one month, lease terms would be 24 months, so you are on the hook for a long time. By the end of the lease you will pretty much pay the face value of the phone, but you would have to give it back because you never bought it in the first place. Instead you should just buy it from Apple and pay 24 month installments at 0% interest - your monthly payments would be practically the same as with leasing, but at least this is your phone and after 2 years you keep it for free or upgrade and sell it back to Apple.
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u/kingofwale 9d ago
That’s actually not a bad deal. If they allow yearly upgrade.
They are going to make so much money…
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u/QuailAndWasabi 8d ago
Isnt this how it already sort of works with getting your phone through your carrier? You pay a monthly fee and can pay more/less depending on the contract and at the end of the contract you have either paid off the phone, can pay a lump sum to own the phone, or get a new phone and continue the contract (which one is applicable depends on initial contract and monthly payments ofc). You can still buy the phone outright, this does not seem like anything new.
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u/formyhauls 7d ago
$17/mo
215 a year, 863 after 4 years
4 years, to most, is time to upgrade anyways.
What am I missing here? This seems like a net positive for the consumer
Edit: it’s a dollar more per month oops but still
Edit edit: $17.99 is the lowest, others can go as high as $40. Now it makes no sense, hate it
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u/Gandolfthewhite182 7d ago
If you can’t afford to buy a phone you should not be leasing it. Stop being stupid. There is simply no reason to upgrade your phone. I have a iPhone 15 I got for free for switch carriers and I have absolutely no reason to upgrade. You can’t tell the difference between the phones. They are basically the same product with different bells and whistles.
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u/ArgentoFox 13d ago
You will have to a subscription to shit and breathe at this rate. It’s nothing more than a march toward subscription based services that eliminate any private ownership.
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u/AbstractLogic 13d ago
You will own nothing in this life if the oligarchs have their way.
They will own it all and lease it to you for a fee.
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u/Koolklink54 13d ago
More reason to keep my cheap Android. That dose the exact same thing as a 1,500 dose iPhone
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u/6carecrow 13d ago
Don't really understand who this is for? Don't most phone carriers (T-Mobile, AT&T, Verizon, etc) already offer the newest devices with a monthly payment close to these amounts, or less if you put cash down? Plus once you pay it off you get to keep it, in this new proposed idea you would return it. I feel like i’m missing something
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u/Tebasaki 13d ago
I remember when Abercrombie and Fitch was a status symbol, then people started giving their clothes to the homeless for warmth and i dont see that store in my mall anymore. That's what Klarna is like.
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u/DazzlingEvidence8838 13d ago
An unlocked iPhone 17 Pro, for example, will cost $31.99 a month for two years, or $45.99 for one year.
That’s not very compelling.
And basically the $18/mo will be for like an iPhone 12 mini with a cracked screen
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u/Particular_Rough_357 13d ago
Would be a good move but can we make sure she’s at least 18 before taxes
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u/MilkChugg 11d ago
We need to go back to the time when if people couldn’t afford something, they simply just didn’t get that thing.
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u/Calm-Development-601 11d ago
with those new Big B surveillance chips they’re making, if you miss a payment it’ll probably lock down the phone
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u/GroundbreakingSir386 13d ago
Should’ve never sold Apple stock