Apple Developing Hardware Subscription Service for iPhones and Other Devices

[Maximara]

You don’t understand how ownership works apparently. I do own my home, hence why I was able to use it as collateral to secure the mortgage in the first place. You cannot use something as collateral that you do not own. If I stop making payments, the home will be foreclosed on and sold. When it’s sold the bank will satisfy the remainder of the mortgage and send me the remaining proceeds from the sale. If the bank owned the home rather than me, they would just keep all of the money from the sale. That’s exactly the point behind collateral, take something you own and offer it as compensation should you fail to fulfill an obligation. And at the end of 30 years I don’t have anymore payments unlike with a subscription where you pay in perpetuity as long as you want the service.

I should bring up HOAs as even if you have paid off your home you have to abide by the rules or they can put a lien against your house and sale it right out from under you. Steve Lehto (an actual lawyer) has some examples that must be listened to to be believed.

 

[vipergts2207]

I should bring up HOAs as even if you have paid off your home you have to abide by the rules or they can put a lien against your house and sale it right out from under you. Steve Lehto (an actual lawyer) has some examples that must be listened to to be believed.

Yes, though the HOA still does not own your home. The nature of a lien, when it comes to fulfilling your financial obligations, isn’t that different from a mortgage. In both cases, should you not fulfill your financial obligations, then the property will be sold in order to make good on the obligations you agreed to and the remaining proceeds returned to you. That said, HOAs are usually garbage and I bought a house that does not have one.

 

[remington79]

Here in Australia, you can already buy a phone from Apple on a payment plan.

I don't understand how this is different? unless you don't get to keep it after 24/36 months.

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That’s a payment plan such as when you buy a new truck or a mortgage on a house.
They’re talking about a subscription like your internet or Hulu where when you don’t pay they take it but if you pay you keep it. But it’s never paid off and you never own it. You’ll keep making that payment on that phone as long as it’s in your possession.

 

[xxray]

I wonder if this will be coming in either of the September or October events with all the new incoming products. Though, Gurman hasn’t brought it up since (that I’m aware of, and this seems more of a Spring event announcement.

 

[anson42]

I wonder if this will be coming in either of the September or October events with all the new incoming products. Though, Gurman hasn’t brought it up since (that I’m aware of, and this seems more of a Spring event announcement.

It Apple does proceed with this option, I agree that it would make sense to announce it during the new iPhone event. I guess we'll find out in a couple weeks.

 

[xxray]

It looks like this may be announced Wednesday. Mark Gurman’s latest newsletter:

One other thing to watch for: In March, I reported that the company is gearing up to launch an iPhone subscription service tied to Apple One. As of now, I have no reason to believe that won’t happen before the end of the year.

It really wouldn’t make sense to not announce this at the iPhone event on Wednesday. I wonder how they’re going to differentiate it from the iPhone Upgrade Program. Hopefully it’ll be cheaper by not automatically including AppleCare+ and not require a carrier to use. But if it’s supposed to be bundled into Apple One, maybe it won’t be cheaper.

 

[anson42]

It really wouldn’t make sense to not announce this at the iPhone event on Wednesday. I wonder how they’re going to differentiate it from the iPhone Upgrade Program. Hopefully it’ll be cheaper by not automatically including AppleCare+ and not require a carrier to use. But if it’s supposed to be bundled into Apple One, maybe it won’t be cheaper.

I think that will be the draw, that it will be cheaper even with AppleCare in place. There's no attraction to subscribing to an iPhone service if there isn't some kind of financial incentive, else just stick with iUP or buy a phone outright on a payment plan.

 

[webkit]

It looks like this may be announced Wednesday. Mark Gurman’s latest newsletter:

It really wouldn’t make sense to not announce this at the iPhone event on Wednesday. I wonder how they’re going to differentiate it from the iPhone Upgrade Program. Hopefully it’ll be cheaper by not automatically including AppleCare+ and not require a carrier to use. But if it’s supposed to be bundled into Apple One, maybe it won’t be cheaper.

It may end up being something like a two year lease with no lease end option i.e., you would just keep "subscribing" over and over. If the phone costs $829, you add $149 for AC+ and it is worth $400 in two years, the subscription payment would be a little over $24/month if no interest charges. That would be about 40% less than the current iPhone Upgrade Program with similar priced phone but you don't own it at the end of two years.

If they also require Apple One, that would bump up the price $14.95/month (Individual) to $29.95/month (Premier). Even with the Individual plan in this example, it would still be cheaper per month than the iPhone Upgrade Program without Apple One but, again, you wouldn't own it at the end of two years.

It's also possible that they would allow you to buy it at lease end for $400 (in this example).

 

[anson42]

That would be about 40% less than the current iPhone Upgrade Program with similar priced phone but you don't own it at the end of two years.

There does need to be a financial incentive but 40% less? Is that too much? I mean, sign me up at that discount. I'm in the iUP now and I feel like I'm subscribing to an iPhone now as I return it every year anyways for another.

 

[webkit]

There does need to be a financial incentive but 40% less? Is that too much? I mean, sign me up at that discount. I'm in the iUP now and I feel like I'm subscribing to an iPhone now as I return it every year anyways for another.

That just happens to be how the numbers would work out based on my example with a two year commitment. Right now, the iPhone Upgrade Program for a 128GB iPhone 13 is $39.50/month. If an iPhone subscription worked as I described, it would be the purchase price ($829) plus AC+ ($149) minus the estimate value in two years ($400) and then divided by 24 months. That comes out to a little over $24/month which is about 40% (more like 39%) less than the iPhone Upgrade price.

If the resale value of the phone is less than $400 or Apple decides to charge interest or Apple requires Apple One, then the subscription price would be higher. It will all depend on the terms and what's included/required.

 

[anson42]

We’ll, I’m surprised the subscription service wasn’t announced today. After Friday it’ll be too late for many of us for iPhone 14 subscriptions.

 

[remington79]

The bugs aren’t ready.