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Apple is no longer planning to launch a hardware subscription service that would let customers "subscribe" to get a new iPhone each year, reports Bloomberg's Mark Gurman.

iphone-16-apple-intelligence.jpg

Gurman first shared rumors about Apple's work on a hardware subscription service back in 2022, and at the time, he said that Apple wanted to develop a simple system that would allow customers to pay a monthly fee to gain access to a device for the subscription period.

The subscription-based iPhone offering would make it easier for customers without the funds for an expensive iPhone to make monthly payments rather than purchasing upfront. Apple already has the iPhone Upgrade Program that splits the cost of a device across a 12 or 24 month period, but the planned subscription service would have been an ongoing monthly fee rather than payments over a set number of months.

After two years of work on the project, Apple apparently ceased development in recent months due to regulatory concerns, software bugs, and other issues. The team that was developing the subscription service was disbanded and reassigned to other projects. Apple has done some streamlining of its payment offerings this year, shutting down the Apple Pay Later pay-in-installments option that was available for less than a year.

Article Link: Apple Drops Plans for iPhone Hardware Subscription Service
 
I paid for my 13 Pro through my carrier over two years, and was so glad to see the payment plan end.

Unless the monthly subscription fee was much lower, there's no way I'd want to keep paying every month for a worn-out (but still very functional) phone unless they shipped me the latest model every year.
 
What would happen if I decide to stop paying this subscription fee? I'd be required to return the phone, and everything I paid would have been for nothing?

Ya, not interested in that. I already feel held hostage to my current subscriptions.
 
They already have the IUP so whatever they were developing would need to be better in some way. IMO, an Apple One + Hardware subscription could be a killer product. For some monthly fee the subscriber always has the latest Apple hardware at a certain level. There could be tiers based on the level of hardware the user wanted.
 
you mean ... this?

Yeah.

Although not exactly identical, I don’t see how Apple’s concept is much different from what annual/bi-annual upgraders are already getting through carriers and whatnot.

I don’t think Apple would have succeeded with this when so many are accustomed to other solutions.

I’m also pretty sure that consumers on average are far less excited about buying new iPhones today than they were some 5-7+ years ago.
 
No mention of what the cost would be. Where I reside a new iPhone costs the same whether it is bought from Apple or a carrier. The carrier gives the option to pay the full price on day 1 or to pay monthly over 12, 24 or 36 months. No interest is charged. You pay exactly the same price no matter which option you choose.
 
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They already have the IUP so whatever they were developing would need to be better in some way. IMO, an Apple One + Hardware subscription could be a killer product. For some monthly fee the subscriber always has the latest Apple hardware at a certain level. There could be tiers based on the level of hardware the user wanted.


Apparently not a killer product since they killed the project. Google offered something similar not too long ago and shut that down after less than a year https://www.theverge.com/2023/8/30/23851107/google-graveyard-pixel-pass-subscription-phone-upgrades

It has never been easier to get an iPhone. Carrier deals, 1-time purchases, financing, availability on the resale market... Why compete in that arena?
 
Good. Who gets to say that a new model is worth releasing every 12 months anyway? Suits, that's who.
 
It often surprises me that forum members quickly judge a product without fully understanding it. What if the offering is specifically for business and enterprise clients? As a technology manager, I would value a solution that includes product rentals or ongoing subscriptions, combining management software with a suite of prioritized support services.
 
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