00:00So, when I woke up this morning, none of this news was out yet, and actually the biggest story was
00:05what you had written up yesterday about upgrade device lease programs and Apple's relationship with Klarna.
00:13Like, a lot of people were reading about that. We have time. What do we need to know?
00:17This is a blockbuster new initiative from Apple. It's called Apple Upgrade. They're going to announce it next Tuesday.
00:23They're going to roll it out on their online store and in their physical retail stores.
00:26This is essentially a hardware subscription program or a leasing program.
00:31This is something Wall Street has wanted for a while.
00:33As these Apple products become more expensive, as Wall Street wants to look for ways to get people to upgrade
00:39more frequently to new Apple devices, a leasing program is exactly how Apple's able to do this.
00:45So, you'll be able to lease an iPhone or Apple Watch over 24 months or an iPad or Mac over
00:5136 months.
00:52You'll make monthly payments just like you're leasing a car.
00:54At the end of the lease, you can either give it back or you can buy it out with a
00:58fee.
00:59These are going to have less costly payments compared to financing and iPhone upgrade programs that Apple offers today.
01:06So, this is going to replace those.
01:08And I think it's a gigantic move for Apple to try to lock consumers in long term, to spur upgrades,
01:14and to get people to buy devices that maybe normally they wouldn't be able to afford.
01:18Now that you've seen price hikes on all their Macs and iPads, the iPhone is about to get a price
01:24hike.
01:24And, of course, the foldable iPhone that we just talked about a couple of minutes ago, that's going to be
01:29a pretty penny as well coming in north of $2,000.
01:32So, great timing for Apple here.
01:34They've been wanting to do this since 2022.
01:37They originally were going to do an in-house version that they were going to financially back in concert with
01:42Goldman Sachs.
01:43Now that the Goldman Sachs relationship has fallen apart, Apple deciding they don't want to do as many financial services
01:48in-house.
01:49They're partnering with one of the name brands here, which, of course, is Klarna.
01:53And you saw their stock go up about 11% when we put our story out yesterday.
01:56And you saw their stock go up about 11% when we put our story out today.
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