Apple Foldable iPhone Set for $2,000 Price Tag and $60 Monthly Leases

Apple plans to release its first foldable iPhone in September with a price tag starting above $2,000. To soften the upfront cost, the company will offer the device through its new Klarna-backed Apple Upgrade leasing program for $60 to $70 per month.

Bloomberg reporter Mark Gurman detailed the pricing structure and launch window in his latest Power On report. The device places Apple in direct price competition with high-end foldables from Samsung, whose flagship foldable models start around $1,900.

Component costs drive the premium price point. Shortages of memory chips and main processors forced Apple to raise hardware prices across its product lineup, including recent $100 to $200 price increases on Mac and iPad models. Upgraded camera hardware inside the upcoming flagship series also adds to overall production expenses.

Bloomberg's Mark Gurman outlined the cost drivers behind the retail pricing decisions for iPhone Duo:

"Apple's price hike is driven by several factors, including shortages of memory chips and main processors."

Customers can choose between paying the $2,000-plus retail cost or signing up for a monthly lease through Apple Upgrade. Apple introduced the financing structure in late July through a direct partnership with financial services provider Klarna.

Under the leasing setup, Klarna handles credit checks and financial underwriting, whereas Apple manages store transactions and direct customer support. At the end of the lease term, buyers can return the hardware, exchange it for a newer release, or pay off the remaining balance to own the device.

Apple previously tested an internal hardware subscription model, but dropped the project due to operational and regulatory issues. The company is replacing its existing iPhone Upgrade Program and standard monthly financing options with the unified Klarna framework.

Unlike Apple's prior upgrade initiative, the new Klarna lease does not automatically include AppleCare+ protection in the base monthly fee. Users must purchase damage insurance separately if they want hardware coverage during their lease term.

Apple Upgrade currently offers 12-month and 24-month lease terms for iPhones, starting at $17.99 per month for standard models. Customers can lower monthly lease payments on the foldable phone by trading in existing Apple hardware at purchase.