Apple is reportedly preparing to retire its long-running iPhone Upgrade Program as it launches a new device financing service known as Apple Upgrade.
According to Bloomberg’s Mark Gurman, Apple will stop accepting new customers into its existing iPhone financing programmes when the new service launches, with the transition expected to begin this week.
The new Apple Upgrade programme is reportedly set to launch on July 28 in partnership with buy now, pay later provider Klarna. Unlike the current iPhone Upgrade Program, however, the new offering is not expected to include AppleCare+ as part of the monthly payment.
Apple introduced the iPhone Upgrade Program in 2015 as a way for customers to spread the cost of a new iPhone over monthly instalments while receiving AppleCare+ coverage. After making 12 monthly payments, customers could trade in their current device and upgrade to the latest iPhone, making it one of Apple’s most popular upgrade options in countries where it is available.
Alongside the iPhone Upgrade Program, Apple has also offered standard monthly financing for iPhone purchases through Citizens One in the United States. Bloomberg reports that Apple also plans to discontinue new enrolments for that programme as it transitions customers towards Apple Upgrade.
It is currently unclear how the changes will affect existing customers already enrolled in the iPhone Upgrade Program or Apple’s standard financing plans. Apple has yet to officially announce the new service or explain whether current members will be able to continue upgrading under their existing agreements.
More details are expected when Apple officially unveils Apple Upgrade next week.