Apple's New Leasing Strategy: A Game Changer for Device Volumes?

Apple Inc's (NASDAQ) stock rose in premarket trading on Friday as investors weighed its new leasing strategy against a mixed backdrop for mega-cap technology stocks.

The company is shifting its device financing strategy toward leasing, which could help protect device volumes as prices rise while encouraging customers to choose higher-priced configurations, according to Counterpoint Research analyst Maurice Klaehne.

Klarna Group plc (NYSE:KLAR) backed the new Apple Upgrade program, which covers iPhone, Apple Watch, Mac and iPad. Customers can upgrade, buy their existing device or return it when the lease ends.

The program also allows Klarna to handle the financing relationship, limiting Apple's credit exposure and enabling it to benefit from customer loyalty and device sales without carrying receivables or credit risk on its balance sheet, Klaehne said.