Apple introduced a program that allows users to rent iPhones and other devices of the company, in the context of the artificial intelligence (AI) boom creating a shortage of memory chips, leading to consumer electronics companies having to increase the prices of their products.
According to this Apple Upgrade program, Apple cooperates with Klarna, a pre-purchase-postpaid service company, the rental program will be carried out at traditional Apple retail stores as well as the company's online stores.
After passing the preliminary credit check, customers will be offered to rent an iPhone for one or two years. There will be a similar option for the Apple Watch, or a two or three-year rental contract for Macbook and iPad computers.
The rental price will be 17.99 USD/month for iPhone, 11.99 USD for Apple Watch, 24.99 USD for Mac and 11.99 USD for iPad. Prices will change significantly, and customers will have to pay more for high-end devices.
For example, an unlocked iPhone 17 Pro will cost $31.99 per month for two years, or $45.99 per year. Some other Apple devices such as iPhone 16 and MacBook Neo are not in this program.
Karen Rasmussen, head of Apple's digital store, said Apple Upgrade will be "a more flexible way" for consumers to pay for products.
According to shares from US media, this rental program is an effort by Apple to make products more affordable as artificial intelligence (AI) pushes the price of memory chips and storage chips to skyrocket. Memory chips and storage chips are used in everything, from phones to laptops.
Market research company Counterpoint Research said that the price of memory chips and storage chips has quadrupled in the past year. Major technology companies, including Apple, have begun to shift this cost to consumers. Last June, Apple increased the price of some iPad and Mac models by up to $200.
