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Apple is reportedly working on a subscription service that would allow users to buy iPhones and other hardware products for a monthly fee - but how it differs from purchase vectors now isn't clear.
The service would be Apple's biggest push into recurring revenue streams, essentially bringing the company's Services model to its lucrative hardware business. However, the project is still in development and the initiative has yet to be announced, Bloomberg reported Thursday.
Additionally, the subscription could also tie into existing Apple services such as Apple One and AppleCare, Bloomberg added.
This is not the first time that a hardware subscription has been rumored. Analysts have long thought that such a service, which could include bundled services, would be a natural fit for Apple.
The report isn't clear about how the service will differ from the existing Apple iPhone Upgrade Program, buying a device with monthly payments on an Apple Card, or buying a phone with monthly payments through a carrier.
All three functionally serve the same purpose, making any launched program mostly a marketing exercise — unless Apple includes some additional benefit tied to its hardware subscription.
Of course, there are subtle differences between monthly Apple Card payments and the iPhone Upgrade Program.
For one, users aren't required to purchase AppleCare with Apple Card payments. When payments end, users end up owning their devices if bought with an Apple Card. On the iPhone Upgrade Program, users have the option to swap their device after six months, or 12 payments.
The subscription service is predicted to debut in late 2022, with a possible launch in 2023.
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12 Comments
I remember this rumour swirling around 10 years ago. Are Apple planning on releasing a TV set too?
Nope
I wouldn’t put it past them mind you.
But for me, nope.
The existing Apple iPhone Upgrade Program requires a postpaid account with one of the big 3 (or 4): AT&T, Verizon, T-Mobile, or Sprint (now T-Mobile). I have T-Mobile prepaid and would prefer to use the iPhone Upgrade Program and get a new iPhone every year. I have tried multiple times and confirmed with Apple Support that prepaid and smaller carriers do not qualify. I used Apple Card Monthly Installments instead. I suspect Apple cut an exclusivity deal with the big 3 for the refurb and resale of traded-in iPhones to make the program more viable. I would like to see this rumored new Apple Hardware subscription come forth but with the same freedom of choice offered by the Apple Card Monthly Installments, namely SIM-free Activate at a Later Time.
Well, this would kinda throw a monkey wrench in the “I own it and I can do whatever I want with it” argument. No, you don’t own it, you’re just subscribing to it.
Not sure I like this idea. Something nice about being able to say you own your phone. But then again, I’m not somebody who wants to change phones every year on launch day, unless there was something truly special to do so. Not into that kind of pace, lol