Upgrading your iPhone every year just got a little easier, and a lot more affordable. But this perk doesn’t come without a handful of restrictions.

With the launch of the iPhone 6s and 6s Plus yesterday, Apple unveiled its own Upgrade Program for replacing handsets with each new release. Similar to the plan recently offered by Sprint, Apple’s Upgrade Program is essentially a subscription service to lease an iPhone and swap it out annually.

This means you can afford an iPhone directly from Apple without the restrictions of a contract from a carrier, and can use your iPhone with just about any carrier of your choice.

Here’s how it works:

iPhone Upgrade Program

Pre-order for the new iPhones start at 12:01 PDT on September 12 and when you pre-order, you can also set-up your iPhone Upgrade Program. This program, simply put, is an installment program offered directly by Apple. Consumers can choose an unlocked iPhone or one from AT&T, Sprint, T-Mobile or Verizon.

The program works very much like the major carriers’ current offerings: The price of the iPhone is spread out over 24 months but after 12 payments, you can upgrade to a new iPhone and a new program begins. Which means if you sign up on September 12th, you will be able to upgrade to a new iPhone when Apple launches it next year.

Pricing starts at $32.41 per month for the 16GB iPhone 6s.

Conditions

Though the offer sounds enticing, it should be noted that the offer is only applicable to customers with a valid U.S. personal credit card, a 24-month installment loan with Citizen’s Bank, N.A. and an iPhone activation via AT&T, Sprint, T-Mobile or Verizon.

Though not stated, I’m guessing iPhones acquired via this program will have to be surrendered before a new program is started, since you will only have paid half of the device’s cost if you upgrade to a new one after just 12 months of payment.

More than just an upgrade

What makes Apple’s iPhone Upgrade Program different from what carriers offer is that it comes with AppleCare+ which means for two years, you have access to hardware repairs, software support, and coverage for up to two incidents of accidental damage. Hardware coverage includes repair or replacement of the iPhone itself, battery, included EarPods and accessories while accidental damage includes screen damage, accidental drops and liquid damage.

Image source: Apple.com