As component and RAM shortages drive prices higher, Apple is reportedly launching an “Apple Upgrade” program for leasing new devices. According to Bloomberg’s Mark Gurman, it will work similar to a car lease, with options to upgrade to a new device early, or keep or return the device at the end of the lease. Gurman says Klarna will be Apple’s financial backer for the new program, which will require a soft credit check to sign up.

Apple Upgrade is reportedly slated to launch on July 28th, replacing the current iPhone Upgrade Program and standard financing for new iPhones with a program available for most new iPhone, Mac, iPad, and Apple Watch purchases. Apple Upgrade will offer 24-month leases for iPhones and Apple Watches, and 36-month leases for iPads and Macs.

Budget devices like the base iPad, iPhone 16, Apple Watch SE, and fast-selling MacBook Neo will reportedly not be eligible. Unlike the current iPhone Upgrade Program, Apple Upgrade won’t include an AppleCare subscription, which is also getting more expensive.

The new upgrade program would come just a month after Apple raised prices on nearly all of its products. While the iPhone wasn’t included in that round of price increases, the iPhone 18 Pro series could raise the bar on pricing when it’s expected to launch later this year.