As component shortages drive device prices higher, Apple is reportedly launching an ‘Apple Upgrade’ program offering lease-to-own pricing for its most popular devices including iPhones, Macs and iPads. Bloomberg’s Mark Gurman reports that the program will work similarly to a car lease, with options to upgrade early or return the device at the end of the lease. Klarna, a financial service company, is reportedly backing the new program which requires a soft credit check.

The rumored launch date for Apple Upgrade is July 28th and it will replace the current iPhone Upgrade Program as well as standard financing options for new iPhones, Macs, iPads, and Apple Watches. The program will offer 24-month leases for iPhones and Apple Watches and 36-month leases for iPads and Macs.

However, budget devices such as the base iPad, iPhone 16, Apple Watch SE and fast-selling MacBook Neo are reportedly not eligible. Unlike the current iPhone Upgrade Program, Apple Upgrade will also not include an AppleCare subscription which is getting more expensive. The new upgrade program would come just a month after Apple raised prices on nearly all of its products.

The launch of this program coincides with the expected release date of the iPhone 18 Pro series and could potentially raise pricing yet again. With budget devices excluded, customers will have to weigh the benefits and costs carefully before signing up for lease-to-own financing options.