Apple is expected to launch a new iPhone lease program called 'Apple Upgrade' on May 28 in the United States, according to a KB Securities report. The program will allow consumers to pay for iPhones over 24 months, aiming to shorten the replacement cycle from 3-4 years to around 2 years. KB Securities analyst Kim Dong-won stated the initiative is designed to reduce purchase barriers for premium models and boost sales of Pro, Pro Max, and future foldable iPhones amid rising memory semiconductor supply constraints that may drive hardware price increases.
Apple Introduces 24-Month Payment Structure to Shorten Replacement Cycles
KB Securities cited foreign media reports indicating Apple will launch the 'Apple Upgrade' lease program on May 28 in the US. The program enables consumers to spread iPhone costs over 24 months, reducing the perceived financial burden even as device prices rise. The analyst noted the program operates independently from carrier contracts, allowing consumers to maintain their lease agreements when switching telecommunications providers. This structure strengthens the direct relationship between Apple and customers while potentially attracting Android users to switch to iPhones. Kim Dong-won stated the lease program will play a role in mitigating price shock as Apple pursues a premium strategy focused on increasing average selling prices through higher-priced model sales rather than volume growth.
KB Securities Projects iPhone Shipments to Reach 260 Million Units by 2027
Global iPhone shipments are projected to increase from 240 million units last year to 250 million units this year and 260 million units in 2027, according to KB Securities estimates. If these projections materialize, next year's iPhone shipments would set an all-time record. The analyst anticipates Apple will significantly expand its product lineup in 2027, the 20th anniversary of the iPhone launch, potentially offering six or more models ranging from budget to foldable devices to simultaneously expand its AI agent ecosystem and smartphone market share.
iPhone18 Models to Feature Expanded Memory Configurations
KB Securities predicts Apple will equip iPhone18 standard models with 9-10GB of RAM and Pro series models with 12GB to support Siri-based AI functionality. The expansion of on-device AI capabilities is expected to stimulate memory demand across the iPhone product line.
Samsung Electronics and SK Hynix to Benefit from Increased Memory Demand
KB Securities identified Samsung Electronics, SK Hynix, and LG Innotek as domestic beneficiaries of Apple's strategy shift. The increased memory capacity in iPhones will positively impact Samsung Electronics and SK Hynix, while higher premium model shipments will drive performance improvements for LG Innotek, which supplies camera modules. Kim Dong-won stated, "Apple's transition to a premium iPhone sales strategy will directly affect component supplier performance starting in the second quarter of this year," adding that "LG Innotek has the potential to achieve record-high performance in 2027."
FAQ
What is Apple's 'Apple Upgrade' lease program expected to launch on May 28?
According to KB Securities, Apple is expected to launch the 'Apple Upgrade' lease program on May 28 in the United States. The program allows consumers to pay for iPhones over 24 months, aiming to shorten the replacement cycle from 3-4 years to around 2 years and reduce purchase barriers for premium models.
How many iPhones does KB Securities project Apple will ship by 2027?
KB Securities estimates global iPhone shipments will reach 260 million units in 2027, up from 240 million units last year and 250 million units this year. If realized, next year's shipments would represent an all-time record for iPhone sales.
