KLAR Stock Jumps 6% as Apple Replaces iPhone Payment Plans With Klarna Leasing

KLAR stock jumped 6% to trade at $18 after Apple launched Apple Upgrade, a new U.S. device leasing program with Klarna. The plan covers iPhone, Apple Watch, Mac, and iPad, replacing Apple’s iPhone Upgrade Program and iPhone Payments offerings in the country.

The launch gives Apple customers another monthly payment option before the company reports fiscal third-quarter earnings on July 30, 2026. Concurrently, Apple shares have also surged briefly, topping a $5 trillion market value during Tuesday’s session.

Apple Launches Upgrade Leasing Programme With Klarna

Apple Upgrade allows U.S. customers to lease Apple devices through Klarna across Apple’s website, mobile app, and retail stores. Customers can lease iPhones and Apple Watches for 12 or 24 months, while Macs and iPads carry 24- or 36-month terms.

Monthly payments start at $17.99 for an iPhone, $11.99 for an Apple Watch or iPad, and $24.99 for a Mac. Premium models cost more, with an unlocked iPhone 17 Pro priced at $31.99 monthly for two years or $45.99 for one year.

Applicants will go through a soft credit check from Klarna, which Apple said will not affect credit scores. Customers can also lower monthly payments by trading in an eligible device.

Apple Card users can earn 3% Daily Cash when paying through the programme. The structure gives Apple another route to support device sales while spreading costs across monthly payments.

Apple Replaces Earlier iPhone Payment Plans

Apple said the new leasing option replaces the iPhone Upgrade Programme and iPhone Payments in the U.S. Existing iPhone Upgrade Programme members can move to Apple Upgrade when eligible.

Customers can also use Apple Card Monthly Installments, carrier financing, or direct purchase options. At lease end, customers can return the device, buy it through a one-time payment, or upgrade to a newer model.

The leasing program may help Apple manage customer demand after recent price increases across some devices. Apple raised starting prices for certain iPad and Mac models after citing higher memory costs.

IDC research director Nabila Popal said many U.S. customers already buy devices through installment plans or trade-ins. She said, “We can expect to see much more aggressive offers.”

Apple has long faced investor attention over the iPhone replacement cycle. Bernstein estimates place the average iPhone replacement cycle near four years, making upgrade incentives an important part of device demand.

Klarna Partnership Arrives Before Apple Earnings

The partnership gives Klarna a major role inside Apple’s U.S. retail and online sales channels. Klarna already provides buy now, pay later services, and the Apple deal expands its position in device financing.

The launch also puts Klarna closer to carrier financing plans from AT&T, Verizon, and T-Mobile. Those companies have long used installment offers and trade-in subsidies to retain customers across multi-year contracts.

Apple will report fiscal third-quarter earnings after the market close on Thursday. Investors are watching device demand, services growth, margins, and the company’s product pricing strategy.

The report will also be Tim Cook’s final earnings update before he becomes executive chairman. Apple has said John Ternus, a longtime hardware engineering leader, will take over as chief executive.

Apple shares reached an intraday high of $342.89 and briefly lifted the company above a $5 trillion valuation. The stock move also helped Apple reclaim the world’s most valuable company title from Nvidia.