Apple is reportedly working on selling iPhones and other hardware products via a subscription service, according to a new report from Bloomberg. The move would allow customers to access Apple devices by paying a recurring fee instead of buying and owning them the traditional way.
The Cupertino based giant offers various software subscription services including Apple TV+, Music, Arcade, iCloud, and more. The brand also offers Apple One bundle that comprises subscriptions of its software services into a single subscription for a monthly fee.
Apple planning to sell iPhone as a subscription service
Selling hardware devices via subscriptions will be Apple’s biggest push in to the subscription services. Additionally, just like other software subscriptions, the devices will be tied to the user’s existing Apple ID account and possibly be bundled with the Apple One service. This would also increase the cost of the entire bundle more than what Apple currently charges.
Bloomberg reports that the monthly subscription fee for hardware devices, i.e., iPhone, will not be the price of the device divided by 12 or 24 months. Instead, it will be an undecided monthly fee depending on the device a customer chooses. Currently, the Cupertino based brand offers iPhone Upgrade Program (in select markets) that is quite similar to the hardware subscription service. It lets customers pay for iPhone over 24 months and upgrade to a new model every 12 months at the same rate.
The hardware subscription service would make it easy for Apple enthusiasts to avoid spending on new devices every year. Subscription service is a key source of revenue for Apple after iPhones. Hence it makes sense for the Cupertino based company to expand its subscription service to hardware devices.
The report adds that Apple could launch the hardware subscription service by the end of 2022 or early 2023. There are also chances that the brand’s plan may end up getting cancelled.