Apple is Introducing Monthly Subscription Service to Buy iPhones: Report


Apple Inc. is reportedly working on a subscription service for its hardware products, including the iPhone and other products. The new model will help make device ownership a lot similar to paying a monthly app fee.

The service will allow users to subscribe to the company’s hardware and automate recurring sales. The project is still in development but has not been officially announced.

Bloomberg was the first to report the news on Thursday, after which Apple shares climbed to a session high, closing at 2.3% at $174.07. Despite suffering a 2% decrease for the year, Apple has managed eight straight days in the green, a first since November.

The hardware subscription model will help shift the strategy of the company, generate more revenue, and allow make it more feasible for consumers to spend money on new devices.

iPhones are Apple’s biggest source of sales, generating over $192 billion in 2021 alone, more than half of the company’s revenue.

Apple spokespeople refused to comment on the company’s plans.

The company has been working on the subscription model for quite some time now and is expected to launch at the end of 2022. However, a delay until 2023 is entirely possible.

Previously, Apple has offered several installment programs to split up the cost of the device. Many researchers, such as those from the Wall Street, have already urged the company to switch to a subscription model.

An analyst from Sanford C. Bernstein & Co., Toni Sacconaghi introduced the idea of hardware subscriptions back in 2016. He elaborated:

Many customers would struggle to think of a single possession they use more than their iPhones. Moreover, the cost of the iPhone is a relative bargain versus other services for which consumers willingly pay.

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