Apple’s answer to rising tech prices may be leasing your next iPhone

TL;DR Apple is reportedly partnering with Klarna for new device lease plans that’ll replace its existing financing options. Customers will be able to lease hardware for 24 or 36 months, with options to return, keep, or upgrade their hardware at the end of each lease. The Apple Upgrade program is expected to launch next week.

Inflation driving up prices of electronics is bad for consumers, of course, but it’s also an issue for manufacturers: you can raise sticker prices on goods like smartphones to turn a better profit on each unit, but if prices get too high, your customer base will start to shrink as shoppers are priced out. Apple’s apparently responding to a challenging economy by changing up its financing options for iPhones and other products, with new device lease options reportedly rolling out next week. As reported by Mark Gurman for Bloomberg , Apple’s gearing up to launch a new program called Apple Upgrade.

Unlike Apple’s existing device financing options, Apple Upgrade will be a leasing arrangement with multi-year terms, after which customers will have options to purchase their leased device, return it, or upgrade to a new model on a new lease.