Apple is launching a device leasing program called ‘Apple Upgrade’ on July 28 in the US to boost sales, Bloomberg News reported on Tuesday, citing people with knowledge of the matter.

The new service arrives as Apple has raised prices on its iPads, MacBooks and other devices except the iPhone, no longer able to shield customers from surging memory and storage chip costs driven by the AI industry’s data-center buildout.

Apple Upgrade will support most iPhone, Mac, iPad and Apple Watch models and the company is partnering with Klarna Group as the financial backer for the program, the report said.

Apple Upgrade will support most iPhone, Mac, iPad and Apple Watch models, according to Bloomberg. Getty Images

It will function as a subscription, allowing users to pay off their device early, switch to a new model before their term ends, or retain the device after the leasing period concludes, Bloomberg reported.

The service will be available in both Apple’s physical retail stores and online.

Apple intends to market the program as offering lower payments than its existing financing options, the report said.

The company plans to end new enrollments in its current iPhone payment plans — the iPhone Upgrade Program and standard financing — to clear the way for the new Apple Upgrade initiative.

Unlike the current iPhone Upgrade Program, Apple Upgrade will not include AppleCare.

Some devices, including the Apple Watch SE, the entry-level iPad, the iPhone 16 and the MacBook Neo, will not be eligible for the program, the report said.

Apple Upgrade will be available in the tech giant’s physical retail stores and online.

Business and education purchases will also be excluded, according to Bloomberg.

Both Apple and Klarna did not immediately respond to Reuters’ request for comment.