- Apple may be working on a subscription service to sell iPhones.
- This could be similar to how you pay for Apple Music and other software services.
- The subscription may allow you to upgrade to new hardware as it is released every year.
Apple is reportedly working on a new subscription service through which it will sell the iPhone and other hardware products in what could be the company’s biggest push in subscription-driven sales. Simply, Apple would sell its iPhone and iPad as a part of a subscription where customers will pay a monthly app fee to own their device instead of buying them through the conventional method. Bloomberg has reported that Apple’s hardware subscription service is still in development, but chances are that Apple will launch it as early as later this year.
For Apple, subscriptions have been extremely important. They contribute heavily to Apple’s overall revenue. But so far, subscriptions have been available on Apple’s software services, such as Apple Music, iCloud, Apple TV Plus, Apple Fitness Plus, and Apple Arcade.
Apple also offers the Apple One bundle that comprises subscriptions of some of its software services into a single subscription for a monthly fee. Selling hardware products through subscriptions is expected to be Apple’s biggest push into subscription services as a whole.
And just like its software services, the iPhone is likely to be tied to the Apple One subscription bundle.
According to Bloomberg, however, the monthly fee for hardware subscriptions would not be the equivalent of instalments where you pay, say, the iPhone’s full price in 12 or 24 months. The subscription for the iPhone, instead, would involve the option to upgrade to new hardware as it is released for an amount that is not clear yet. In other words,
Apple would charge you a fee that will include a part of the cost of the iPhone as well as a fee that would let you upgrade to a new iPhone next year without having to pay the full amount.
Apple could also bundle its software services into the iPhone subscription. This is what the report said could be the nature of the subscription, but nothing is officially confirmed.
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