KLAR Stock Climbs After Apple Reportedly Picks Klarna To Power Its New Device Leasing Service

• Klarna shares rose after a Bloomberg report said Apple plans to launch a new device leasing program called ‘Apple Upgrade’ on July 28, with Klarna serving as the financing partner.
• The report said Apple Upgrade will gradually replace Apple's existing iPhone Upgrade Program and standard financing options while offering lower monthly payments.
• Keefe Bruyette reiterated its 'Outperform' rating and $26 price target on Klarna, saying the partnership strengthens the company's U.S. merchant growth opportunity.

Klarna (KLAR) shares rose in midday trade on Tuesday after a Bloomberg report stated that Apple (AAPL) is preparing to launch a new leasing program called Apple Upgrade on July 28, backed by the fintech company. 

KLAR stock climbed as much as 3% in midday trade to just under $20, while AAPL’s stock edged 0.7% higher. Klarna shares were among the top trending tickers on Stocktwits at the time of writing.

Keefe Bruyette maintained its 'Outperform' rating and $26 price target on Klarna following the report. According to a note to investors cited by TheFly, the firm said partnering with Apple on the reported leasing program would strengthen Klarna's position with U.S. merchants and deepen its presence in consumer financing.

Apple Reportedly Picks Klarna for 'Apple Upgrade'

According to Bloomberg, Apple Upgrade is expected to launch on July 28 and will function more like a subscription than a traditional installment plan, covering most iPhone, Mac, iPad, and Apple Watch models. It will be available at Apple's physical retail stores and online, initially only in the U.S. 

Instead of purchasing a device outright, customers would make monthly payments for eligible iPhones, Macs, iPads, and Apple Watches. At the end of the lease, users could upgrade to a newer model, buy the device by paying its remaining value, or simply return it. Some transactions may also include additional fees, according to the report.

How Apple Upgrade Would Work

The report said that lease terms would vary by product. iPhones and Apple Watches would carry 24-month terms, while Macs and iPads would be leased over 36 months. Customers would also need to complete a soft credit check before approval.

It added that unlike Apple's existing iPhone Upgrade Program, Apple Upgrade won't include AppleCare, and several devices are excluded entirely, including the Apple Watch SE, entry-level iPad, iPhone 16, and MacBook Neo. Business and education purchases won't qualify either.

Apple is reportedly positioning the service around lower monthly payments and plans to discontinue new enrollments in its existing iPhone Upgrade Program and standard financing offerings.

The move comes after Apple recently increased prices across several Mac and iPad models following higher memory costs, while analysts broadly expect another round of price increases alongside this fall's iPhone launch. 

At the time of writing, neither company had confirmed the details publicly.

How Is Retail Feeling About KLAR, AAPL Stocks?

Both KLAR and AAPL stock saw an uptick in retail sentiment on Stockwits over the past day. Sentiment around Klarna rose to ‘neutral’ from ‘bearish’ territory, while sentiment around Apple jumped to ‘extremely bullish’ from the ‘bullish’ zone.

Platform data showed that chatter around KLAR’s stock more than doubled in the last 24 hours, while chatter around AAPL’s stock rose nearly 200%. 

Despite Tuesday's rally, Klarna shares remain down roughly 33% this year, while Apple stock has gained about 21%.

Read also: ADBE Stock Drops After Morgan Stanley Downgrade – Sees ‘Cleaner Growth And AI Monetization Elsewhere’

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