Apple Developing Hardware Subscription Service for iPhones and Other Devices

[4jasontv]

I went from a 6S to a 13 Pro and the performance of the 6S was pretty dam good still. It was all the other improvements added together that really had the biggest impact.

I still think owning your phone outright then selling it will be a cheaper total cost of ownership, plus you aren’t leasing a phone.

The way I interpreted the summary was people who participated are basically paying for the depreciation of the device, which with Apple I would expect to be far less than half the device's cost.

This could benefit a lot of people since more refurbished devices could be offered to people who don’t see measurable benefits from generational updates to performance.

 

[j569mxr]

People who don't have the funds to buy this device in the first place should not subscribe to that kind of services. There's no way the would be cheaper on the long run, and you can't resell the device afterwards

agreed, but not everyone looks at it that way. they say "I can afford $65 a month for a new phone" and never think they'll end up paying $1500 for a $900 item.

 

[rui no onna]

It makes good sense to offer a program that allows some people to pay for the depreciation so that others can buy lower-cost devices that have 2 to 4 years of life left in them. I wouldn’t call that wasteful at all.

Would be nice if it worked out this way but I kinda get the feeling a subscription service would just give Apple more freedom to increase their product prices since people are just looking at the monthly cost.

I save ~$100 per month for the iPad budget but at least I own the device. It would suck to pay that much every month (due to subscription inflated prices) and still not be able to keep the iPad.

 

[billychode]

 

[AppleFan735]

People who don't have the funds to buy this device in the first place should not subscribe to that kind of services. There's no way the would be cheaper on the long run, and you can't resell the device afterwards

True. They create the illusion of affordability for something that’s is not affordable for a particular group of people.

 

[guzhogi]

What happens gif you break a device? I work in IT in a school district, and some of the kids are absolutely brutal with their devices. Had to replace one because the kid shattered their iPad when playing on a peloton, another kid took there iPad out of the case and intentionally threw it multiple times. Lots of iPads with liquid damage. Heard of one student who "accidentally" dropped their MacBook Air down the elevator shaft (yet it still turned on!). Also so a bunch of MacBooks with not one, not two, but something like 13 keys missing. So glad my district charges the family for the more negligent/intentional damage.

 

[Saturnine]

The “never own” model rarely works out better for the consumer in the long run. Whether it’s renting houses, leasing cars or subscribing to phones, yes it may be a necessary evil but it’s never the cheapest option.

Houses and cars I can somewhat understand as they are absolutely critical and if they’re the only way you can get one then so be it. If I couldn’t afford the latest iPhone I’d buy a cheaper phone.

I can’t see Apple charging less than the retail cost of the device over the subscription term so, ultimately, you’ll end up paying for the phone over (for example) 12 months, then giving it back to Apple who will undoubtedly sell it as refurbished or send it back to China to be stripped down for parts.

We will, of course, have to see the details before making any firm judgments but I would definitely advise caution before jumping on something like this.

 

[guzhogi]

If renting a device means I'm not locked into a particular amount of storage (or, for Macs, a particular amount of DRAM or CPU config) then, OMG, how will I endlessly whine on the internet about Apple products not being "upgradable"???

I have to wonder about pricing. Will 512GB storage by $X/month while 1TB is $X+100/month, or will it be one price regardless?

 

[Attirex]

Can I rent the polishing cloth?

 

[roland.g]

How is that different from a car rental, which has been a thing since forever?

It's like a Lease for new (as well as used CPO level) retail cars, except your minimum commitment is 4 months. Walk into a dealer, pick a car, and drive away with a subscription payment, all maintenance included. Interesting model.

 

[guzhogi]

What would a Mac Pro be like under this? Will it still be modular, with replaceable GPUs/PCIe cards? What happens when you want a newer model Mac Pro, but threw away the original GPU? Will you get charged for that?

 

[roland.g]

The “never own” model rarely works out better for the consumer in the long run. Whether it’s renting houses, leasing cars or subscribing to phones, yes it may be a necessary evil but it’s never the cheapest option.

Houses and cars I can somewhat understand as they are absolutely critical and if they’re the only way you can get one then so be it. If I couldn’t afford the latest iPhone I’d buy a cheaper phone.

I can’t see Apple charging less than the retail cost of the device over the subscription term so, ultimately, you’ll end up paying for the phone over (for example) 12 months, then giving it back to Apple who will undoubtedly sell it as refurbished or send it back to China to be stripped down for parts.

We will, of course, have to see the details before making any firm judgments but I would definitely advise caution before jumping on something like this.

Correct. Just like a car lease it's a convenience option. The housing rental market is different in that many people rent because they cannot buy, whereas some if not many that lease cars, do so out of convenience. They don't mind the lack of equity.

 

[Kobayagi]

Like with everything your rent, this sounds stupid.

If you're already paying a monthly fee, why not buy it and pay in installments instead? In the end, you'll actually own the device and can even sell it and get some of your money back, since Apple stuff (in nice condition) usually keeps its value. I know it's hard with expensive stuff like a house or a car for some people, but if you can already afford Apple stuff, you can probably pay it in installments?

 

[TonyC28]

I am confused. AT&T and Verizon allow anyone to get a FREE iPhone Pro every three years. So why would I get on the Apple subscription plan that gets me a new iPhone every 2 years? This seems like a really bad deal - like really bad. The same argument applies to renting a Macbook Pro which will last at least 4 years and then can be sold at 30% of the purchase price. For example, a nice MacBook Pro cost to purchase and then sell after 4 years is ~ $2800*0.7/48=$41 month so any subscription plan much above this price is not worth it.

I don’t know all the particulars. We’re just talking here.

And no, those iPhones are not “free.”

 

[TonyC28]

True. They create the illusion of affordability for something that’s is not affordable for a particular group of people.

Just like houses and cars?

 

[coachgq]

I don't like this, so I won't do it. Right now I upgrade every year. The difference is I do it via the carrier, TMo, and buy the cheapest phone available on the trade in list. Pay off my current phone, use the cheap one as a trade and pocket the rest. Usually puts a couple hundred per line in my pocket.

 

[4jasontv]

Would be nice if it worked out this way but I kinda get the feeling a subscription service would just give Apple more freedom to increase their product prices since people are just looking at the monthly cost.

I save ~$100 per month for the iPad budget but at least I own the device. It would suck to pay that much every month (due to subscription inflated prices) and still not be able to keep the iPad.

Yeah. Leasing doesn’t work if you hold on to something beyond the lease period.

It’s funny though because I used to have a client and their policy was they were not allowed to lease anything and they had to dispose of it when done using it. They already ran into issues after trade shows because they would buy those Industrial TVs and then scramble to find someone to take them so they didn't have to find a recycling center that would accept them.

 

[dj458]

The OLED screeen iphone is killing my eyes. So much eye strain after using it, you can't turn the screen too bright, otherwise it will burn your eyes. If iphone 14 can't solve this issue, I will certainly not buy it no matter how great it is!!!!

 

[shplock]

Presumably this will require Apple Card just in case people are thinking of keeping the device and not making any further payments.

sadly that will mean only the US will get it as Apple Card is STILL not available outside the US. There is really no excuse here!

 

[PressureDrop]

This creates financial redistribution and the gap between rich and poor increases because people only rent and do not own. The consequences are already visible: private sale of an iPhone vs. trade-in at Apple...

 

[DJLC]

T-Mobile has a similar program and will buy-out your AT&T account up to a certain dollar value.

I've considered T-Mo since they're among the iPUP carriers anyway. But the price compared to AT&T just isn't that different. If I'm gonna make a move, I'm more interested in an MVNO.

 

[dj458]

People always want to buy iphone for better life until they know that the better life is when you get rid of the screen devices. Dumb people!!!

 

[dj458]

People always want to buy iphone for better life until they know that the better life is when you get rid of the screen devices. Dumb people!!! No one really think you are successful when your iphone has 3 camera bumps instead of 2 bumps!

 

[shplock]

I’m surprised Apple doesn’t have its own MVNO at this point. To still have to deal with an outside service provider 15 years after the original iPhone launched kind of baffles me.

Same here! If Steve Jobs were alive then he would likely do it however we are stuck with clueless bean counter Tim Cook who seems allergic to spending money at Apple!
Tim Cook may be great at the supply chain and such but he is terrible at new products.

 

[rui no onna]

Yeah. Leasing doesn’t work if you hold on to something beyond the lease period.

At least for me, the lease/subscription would have to be significantly cheaper than the amortized cost of the device to be worth it.

As I mentioned though, I kinda feel this is just a way for Apple to increase prices while getting a lot of recurring sales.