Cupertino-based Apple announced its new product lineups, including the new iPhone 6s and 6s Plus, during the company's Sept. 9 event in California. The convention did not focus only on Apple's hardware lineup but other areas as well. During the event, one of the surprises was the announcement of a new initiative called the iPhone Upgrade Program. 

Apple's new program lets users spread out monthly interest-free payments for the iPhone of their choice over a period of two years. But instead of waiting for the full two years before upgrading models, users can already trade in their iPhones for a new model a year after they have availed of the program.

The new program is competitive enough with some of the major carriers' contract plans, since Apple promises that one of the perks of the initiative is that the monthly payments will stay low and will not come with any hidden charges. For example, the base model of the iPhone 6s with 16 GB storage will be available for just $32.41 per month, while the 128 GB iPhone 6s Plus is at $44.91 monthly. 

In addition to low monthly rates, outside of their chosen carrier's warranties, there is also an additional $129 cost for the AppleCare+ extended warranty. The warranty is for a full two years, and a coverage of up to two incidents of accidental damage can also be an add-on for another $99 service fee. 

Also, Apple will be releasing unlocked iPhones for the program and the phones remain unlocked even after carrier activation. This means that subscribers who are also Apple fans can change networks without buying another iPhone.

Currently, the iPhone Upgrade Program is only available in the United States. Apple has not said anything yet about whether it plans to expand the program overseas.