Apple is apparently developing a new subscription service via which it will sell the iPhone and other hardware products, in what might be the company’s greatest push into subscription-based sales yet. Simply put, Apple would sell its iPhone and iPad as a subscription service, with customers paying a monthly app charge to possess their device rather than buying it outright.
Subscriptions have been critical to Apple’s success. They make a significant contribution to Apple’s overall revenue. Apple’s software services, such as Apple Music, iCloud, Apple TV Plus, Apple Fitness Plus, and Apple Arcade, have all offered subscriptions so far.
Apple’s biggest push into subscription services is expected to be selling hardware devices through subscriptions. The iPhone, like Apple’s software services, is likely to be part of the Apple One subscription bundle.
However, according to Bloomberg, the monthly rate for hardware subscriptions would not be comparable to installments, such as paying the full price of an iPhone over 12 or 24 months. Instead, the iPhone membership will include the ability to upgrade to new hardware as it becomes available for an undisclosed fee.
In other words, Apple will charge you a fee that includes a portion of the iPhone’s cost as well as a fee that allows you to upgrade to a new iPhone without having to pay the full price next year. Apple’s software services might also be bundled into the iPhone subscription. The story speculated that this was the nature of the subscription, although nothing has been formally confirmed