Apple has unveiled a collaboration with the popular "buy-now-pay-later" service provider, Klarna, to launch the Apple Upgrade leasing initiative. Customers in the United States can take part through all sales channels, with monthly iPhone rental fees starting as low as $17.99 and lease periods extending up to two years. Leasing options are also available for the Apple Watch, Mac, and iPad, although certain models like the iPhone 16 and MacBook Neo are not currently part of the program. At the conclusion of the lease term, users have the flexibility to return the device, make a final payment to own it outright, or upgrade to a newer model. Leasing does not require an upfront deposit, and if payments are delayed for three months, the contract will be automatically terminated. Apple has discontinued its original iPhone Annual Upgrade Program in the U.S. and is encouraging users to switch to the new plan, which offers more affordable leasing rates. Previously, Apple increased the starting prices across its entire iPad and Mac product lines, and industry analysts anticipate that iPhone prices may also see a hike. The new leasing model not only aids in lowering users' monthly costs but may also incentivize more frequent device upgrades. In the meantime, Apple will encounter direct competition from mobile carriers. Apple is scheduled to announce its financial results for the third quarter this Thursday, marking Tim Cook's final earnings report as CEO before he transitions to the role of Executive Chairman of the company's board.