Apple begins renting iPhones
(Dan Tri) - Apple has just launched an iPhone rental program called Upgrade. After passing basic credit checks, customers will be offered a 1-2 year iPhone rental package.
iPhone and Apple Watch can be leased for 12 or 24 month terms. Meanwhile, Mac and iPad computers have lease terms of 24 or 36 months. Currently, this program is only being deployed in the US market.
Apple started leasing devices through the Upgrade program (Photo: Apple).
Products that support this program include iPhone 17 series, iPhone Air, Apple Watch Series 11, Apple Watch Ultra 3, MacBook Air, MacBook Pro, iMac, Mac Studio, iPad Air, iPad Pro and iPad Mini.
iPhone 16, MacBook Neo, standard iPad, and Apple Watch SE are not included.
The cheapest iPhone rental option costs $17.99 per month. Costs will vary depending on the equipment and rental period. For example, to rent an iPhone 17 Pro for 2 years, users will need to pay a fee of 31.99 USD per month. If the rental period is 1 year, the monthly cost will increase to 45.99 USD.
After the end of the rental period, users can choose to return the device, buy it outright by paying the remaining value or exchange for a new device.
Francisco Jeronimo, an analyst at market research firm IDC, said the program could help consumers view their iPhone or Mac as a subscription service instead of a big-ticket purchase.
Apple's announcement was made in the context of the memory chip crisis becoming increasingly serious. Recently, Apple has adjusted the selling prices of a series of products, including Mac computers and iPads.
According to Reuters, Apple's implementation of the device rental program stems from many factors, including increasing hardware prices, long user device upgrade cycles, and the goal of stabilizing revenue sources through recurring payments, while encouraging customers to upgrade devices more frequently.
According to many leaked sources, Apple may increase the price of new iPhones this year. The new program allows Apple to shift its focus from high upfront list prices to lower monthly payments.
"Most Apple customers, especially in the US and other developed markets, are buying devices on installment plans or trade-in programs. So we can expect stronger incentives," said Nabila Popal, senior research director at IDC.
Users can rent iPhones for 12-24 months (Photo: Gizmodo).
According to CNN, Apple is looking for new ways to offer iPhones through installment payment services. This is considered a strategy to help alleviate the seasonality of business operations and reduce the company's dependence on new equipment upgrade cycles.
Currently, the average iPhone upgrade cycle lasts nearly 4 years. The new iPhone leasing program is expected to encourage customers to replace their devices sooner.
"We should start thinking about an iPhone that costs $1,500, instead of a device that costs $1,000 or $1,200. Continuing price increases could affect users' upgrade cycles. The Apple Upgrade program comes at the exact time when Apple needs it the most," shared Mike Howard, vice president of memory at research company TechInsights.