Apple just made it easier to get a new iPhone without paying full price upfront. The company also joined forces with Klarna to roll out a new leasing initiative dubbed Apple Upgrade. Shoppers can now lease an iPhone for just $17.99 per month.

The timing fits in. The prices of the phone’s components are going up throughout the tech sector. Apple would like customers to think their products are cheaper per month, even if the sticker price remains high.

How the Leasing Plan Works

Here is how the plan works. You apply through Apple’s website, an Apple Store, or the Apple Store app. Klarna conducts a soft credit check on each applicant. Apple assures that this check will not impact your credit score. Leases run 12 to 36 months, depending on the device you pick.

Leasing Covers More Than Just iPhones

This leasing option is not just for iPhones. An Apple Watch, iPad or Mac is available for lease also. iPhone and Apple Watch leases have either 12 month or 24 month terms. Leases for Mac and iPad can be up to 24 or 36 months. Its monthly pricing is $24.99 for Macs and $11.99 for iPads and Apple Watches.

What Happens When the Lease Ends

At the end of your lease you have 3 easy options to choose from. The phone can be sent back, upgraded to a later type or extra money can be paid to hold onto the phone forever. Retiring an older device can help reduce your bill. Besides, Apple Card holders get Daily Cash of 3% for every lease payment.

Older Programs Are Going Away

Apple is retiring its older iPhone Upgrade Program and iPhone Payments plan to make room for Apple Upgrade. However, current members have nothing to worry about. They can upgrade to the new plan or opt for carrier financing, Apple Card installments, or outright device purchases.

What This Means for Shoppers

This change is indicative of a broader trend. Apple is after consistent revenue rather than just a big day launch. The real question from shoppers is not the low monthly price. It is the total cost over a period of time. Leasing can be cost-saving for frequently upgrading version owners. Long term owners may still come out ahead by buying outright.