The New iPhone Underclass
Apple has introduced a new monthly leasing program for its hardware, replacing the previous installment-based upgrade program. Critics argue this shifts the consumer relationship from ownership to rental, potentially creating a new class of users who never fully own their devices.
Why it matters
The transition to leasing models for consumer electronics reflects a broader economic trend toward 'access over ownership' and raises questions about consumer rights and long-term costs.
Illustration by Matteo Giuseppe Pani / The Atlantic July 29, 2026, 6:17 PM ET Share Save Buying a new smartphone comes with lots of decisions. iPhone Pro or iPhone Air? “Cosmic Orange” or “Deep Blue”? Now there’s a new consideration to add to the list: buy or rent? Yesterday, Apple announced a new monthly lease program, which will allow prospective buyers to rent new electronics such as iPhones, MacBooks, iPads, and Apple Watches via an agreement with Klarna, the same company that facilitates monthly payments for $4 polyester underthings on Shein.
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