Apple is preparing to introduce a new way for customers to get its devices without paying the full price upfront. According to a new Bloomberg report, the company will launch a leasing program called Apple Upgrade in partnership with Klarna. The new service is expected to go live on July 28 and will replace Apple’s current iPhone Upgrade Program.

The new Apple Upgrade program will work like a subscription service. However, customers will first need to complete a soft credit check before joining the program. Unlike a hard credit inquiry, a soft credit check usually does not affect a person’s credit score.

Customers will be able to lease different Apple products for fixed periods. The iPhone and Apple Watch will have 24-month lease terms. Meanwhile, the iPad and Mac will come with 36-month lease periods.

However, not every Apple product will be available through the program. The Apple Watch SE, the base iPad, the iPhone 16, and the MacBook Neo will not be included.

Apple will also give users more flexibility during the lease. Customers can pay off their device early if they want. They will also have the option to upgrade to a newer model before the lease ends. Once the lease finishes, users can either return the device or keep it.

One important change is the removal of AppleCare from the package. The current iPhone Upgrade Program includes AppleCare coverage, but the upcoming Apple Upgrade Program will not. Bloomberg also reports that Apple plans to discontinue the existing iPhone Upgrade Program when the new service launches on July 28.

The timing of the new leasing program is also notable. About a month ago, Apple increased prices for almost all of its devices except the iPhone. As a result, the new leasing option could make expensive Apple products easier to afford through monthly payments. It may also help Apple maintain strong sales despite higher hardware prices.