Looking for the Catch in Apple Upgrade

Damon Beres, writing for The Atlantic under the hed/subhed: “The New iPhone Underclass: Apple’s rental program is a trap”: The Klarna plan — “Apple Upgrade,” which replaces the iPhone Upgrade Program — is truly, legally, a lease. This is confusing! And it’s confusing in part because this is not how Klarna, a well-known buy-now, pay-later service, typically operates: When you use Klarna for clothing from Shein or lip kits at Sephora or an Xbox at GameStop, you’re paying back a loan, exactly as you were in the original iPhone Upgrade Program. Same if you use Klarna to buy a Samsung Galaxy phone. But with Apple Upgrade, you are renting: The Mac or Apple Watch is not yours until the final payment is made. I don’t think this is confusing at all. Apple Upgrade is the primary brand for this program, not Klarna. Klarna is really only mentioned in the small print. You get into Apple Upgrade through Apple . Off the top of your head, do you remember Apple’s bank partner for the now-discontinued iPhone Upgrade Program? ( It was Citizens Bank .) The Samsung program Beres links to above is named “Klarna Pay in 4”. “Apple Upgrade is a leasing program partnered with Klarna” is easily understood. Here’s what Beres thinks is a “trap”: Consider a student or a young professional, or perhaps an underemployed older one, who needs a new laptop. They decide on a MacBook. Apple Upgrade will appear to be the best deal: In its announcement , Apple offers the example of a 14-inch MacBook Pro that retails for $1,999 but that can be had for a monthly lease.

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