✎ Contributed by Ty Griffin
U.S. consumers will soon be able to lease iPhones for as little as $17.99 per month through a new program available in physical and online retail stores. Customers who pass a soft credit check can select one- or two-year phone leases, with additional leasing options available for watches, tablets and computers.
The program arrives as higher memory and component costs increase pressure on device prices. By emphasizing monthly payments instead of upfront prices, leasing could make premium products more accessible, shorten replacement cycles and reduce the manufacturer’s dependence on large sales increases surrounding major product launches.
Market Reaction
- Apple Inc. (NASDAQ: AAPL): $340.10, up $3.20 (0.95%)
- Klarna Group plc (NYSE: KLAR): $18.77, up $0.28 (1.51%)
- Affirm Holdings Inc. (NASDAQ: AFRM): $72.44, down $0.62 (0.84%)
- AT&T Inc. (NYSE: T): $24.70, up $0.30 (1.21%)
- Verizon Communications Inc. (NYSE: VZ): $48.22, up $0.86 (1.82%)
Investor Sentiment
Gains in the device maker and its financing partner suggest investors see leasing as a potential way to support demand while hardware prices rise. The program could produce steadier upgrade activity, deepen customer loyalty and expand financing revenue without requiring consumers to make large upfront purchases.
The decline in a competing installment lender highlights the competitive pressure created by a prominent new financing partnership. Investors will also monitor how wireless carriers respond, since direct leasing could weaken the role of carrier installment plans and trade-in subsidies while giving consumers greater flexibility to purchase unlocked devices.
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