Other Apple Is Working on a Hardware Subscription Service for iPhones

[vegetassj4]

Apple Is Working on a Hardware Subscription Service for IPhones

Apple Inc. is working on a subscription service for the iPhone and other hardware products, a move that could make device ownership similar to paying a monthly app fee, according to people with knowledge of the matter.

www.bloomberg.com

 

[Andeddu]

I personally prefer owning rather than renting, but I guess it’s a good proposition for those who are looking to regularly update their phones.

 

[John981]

Isn‘t there something like this in the US already? iPhone Upgrade Program?

 

[JPack]

There's obviously the lower payment threshold which means more customers will be eligible.

This program would also reduce the size of the secondary market because there will be fewer used devices floating around for sale.

 

[HDFan]

Isn‘t there something like this in the US already? iPhone Upgrade Program?

Slightly different. iUP is in effect an extended loan purchase program. You apply, get a loan approved from Citizens for the full amount, and you pay a monthly fee for 24 months to pay off the loan. After 2 years you can keep the phone when you have paid off the loan. After 12 payments you are eligible to to turn in your phone for a new device and a new loan, or pay the outstanding amount to keep it.

 

[now i see it]

The rumored subscription (rental) program was (rumored) to be for all Apple products.

iPhone? Who cares?
Fully maxed out Mac Pro rented for a few months? = perfect for a guy needing a lot of muscle to get a project done on time.

 

[elvisimprsntr]

I wish Apple would become a MVNO already. I buy my phone and plan from Apple. Apple negotiates with carriers to provide the best coverage for a given location and congestion. If ATTs infrastructure goes down (which has been known to happen), my cell phone can easily switch to a TMO tower/service.

The current plans in the US nickel and dime the customer out of their coin$.

 

[snipr125]

This is happening a lot more now, there is a demand to rent rather than buy outright. More people are leasing their new cars, using streaming services like Netflix/Amazon prime/disney plus (essentially renting video) and things like Game Pass on the Xbox.

 

[CrazyForCashews]

This is happening a lot more now, there is a demand to rent rather than buy outright. More people are leasing their new cars, using streaming services like Netflix/Amazon prime/disney plus (essentially renting video) and things like Game Pass on the Xbox.

Could be beneficial for the well being of this planet.

So much unnecessary waste out there.

 

[planteater]

Could be beneficial for the well being of this planet.

So much unnecessary waste out there.

Maybe not. It could promote unnecessary upgrades depending on the rental (subscription) agreement. Better for the environment would be promoting long term ownership of devices.

 

[catean]

Maybe not. It could promote unnecessary upgrades depending on the rental (subscription) agreement. Better for the environment would be promoting long term ownership of devices.

You are not taking in consideration the circular economy. Hardware will reach a point where improvements will be small and at a slower pace. Apple can just take a preowned device, use a robot to refurbish and resell it without mining for new materials.

 

[planteater]

You are not taking in consideration the circular economy. Hardware will reach a point where improvements will be small and at a slower pace. Apple can just take a preowned device, use a robot to refurbish and resell it without mining for new materials.

Good point, but they can do that with regular trade-ins as well. Ultimately, I feel subscriptions will probably promote the constant cyclical upgrades, when policies should promote the longevity of the device. I guess we need to see what their offering looks like.

Regardless, I’ll continue to hold my purchased devices for their useful life, and doing so almost certainly will continue to be the least expensive and most environmentally friendly route.

 

[Devyn89]

I pay Apple enough monthly already, this is definitely not for me if they decide to do this.

 

[catean]

Regardless, I’ll continue to hold my purchased devices for their useful life, and doing so almost certainly will continue to be the least expensive and most environmentally friendly route.

Agree, I do the same. Upgrading every year is FOMO and good marketing.

 

[Ryand123]

None of the articles say if this would likely be an option or if they will make it the ONLY way of buying an iPhone.

I would absolutely not choose to participate. This is a shareholder friendly move, not a customer friendly move.

 

[B_mark_R]

Starting at $37 a month, Samsung Access included a Samsung phone, warranty coverage, a terabyte of cloud storage through Microsoft OneDrive, and Microsoft 365 Personal access. Customers were able to return their leased device and walk away fee-free after subscribing for at least three months, and Access offered the opportunity to trade up to a new device every nine months.

If apple was to hit this price point with similar features it would be epic!

 

[mnsportsgeek]

I have absolutely no interest in this as our house keeps phones for 4 years, but I bet a lot of annual upgraders would jump on this.

 

[CTHarrryH]

No interest at all. I want to choose if I want to keep a phone after I pay for it or not.
Details, of course, will make a difference to many people.
I also wonder if this is one of those lets throw out and idea and see how people react before we decide if we are really going to do this

 

[The Game 161]

be interesting if this is live for the new iPhones this year

 

[doolar]

Could be beneficial for the well being of this planet.

So much unnecessary waste out there.

I believe the opposite with this system. Just look at car “ownership”. Even people with lower income can lease a car they can’t afford. Cars are considered old after three years, and nobody can own an old car… Which means more new things produced all the time.

If we could swap out our MacBooks on a yearly base, I bet a lot of people who could be using the same laptop for 5-10 years would. More things being produced again.

 

[webkit]

This topic is also being discussed here:

Apple Developing Hardware Subscription Service for iPhones and Other Devices

Apple is developing a hardware subscription service that would allow customers to "subscribe" and receive an iPhone or other Apple device as part of their subscription, similar to the way current Apple subscriptions like iCloud work, reports Bloomberg. Customers would be able to pay a monthly...

forums.macrumors.com

 

[webkit]

Cars are considered old after three years, and nobody can own an old car… Which means more new things produced all the time.

I wouldn't say cars are considered old after three years. People, on average, are keeping cars longer than ever and the life expectancy of cars is much longer than it used to be. The average length of new car ownership is something like 7 years and the average age of cars on the road is over 12 years.

 

[Fat_Guy]

Months ago I talked about Apple’s stated plan to be a subscription company and got voted down for it.



The bottom line is that almost all big name tech companies want subscription only customers. They make more money this way and have fewer proprietary issues with the customer as the customer now owns nothing. The music on the phone - Apple’s - movies on the phone Apple’s - your photos, held for ransom in the cloud if you piss them off.



In the end the customer owns nothing but pays Apple for everything, don’t like how they operate then you get kicked to the curb with nothing. You have a content license for nothing as they own the hardware it’s on. Indie creators are forced out of the licensing market individually and give up their rights to get in the platform. All hail big tech!



It all sucks and Apple is not alone here. Welcome to the future.

 

[doolar]

I wouldn't say cars are considered old after three years. People, on average, are keeping cars longer than ever and the life expectancy of cars is much longer than it used to be. The average length of new car ownership is something like 7 years and the average age of cars on the road is over 12 years.

Perhaps, but I’m talking about what’s socially acceptable these days. And at least in Sweden where I live, people are not keeping their cars longer than we used to. My grandfather, who was an executive for almost his entire working career, bought a car, paid in cash, kept it for 10-15 years - wash, rinse, repeat. I remember him doing undercoating himself in his garage to prepare it for winter every year.

We have a 2017 Toyota, my wife (she is the COO at her company ) is constantly being asked when she’s going to swap out her “old” car. She is the only person not having a new-ish car - and the only one having a “cheap” Toyota. It’s all pretty silly, like she’s being judged because we use our money wisely instead of just getting new stuff all the time. We finally caved and ordered a new one, partly because of the crazy times we live in, I will be able to sell the Toyota for the same amount we paid for it four years ago, meaning no depreciation, which is amazing value really.

My co-workers at my previous job looked strangely at me when I turned down a company car. I don’t need it, I don’t want it, even if it’s subsidised and pretty cheap to have. I much prefer my motorcycle, or our Toyota if I need to sit in a tin box for whatever reason.

This is why I think subscription hardware only will make us swap our tech quicker. If I pay $30 a month no matter what I do, why not just get the newest iPhone?

 

[webkit]

Months ago I talked about Apple’s stated plan to be a subscription company and got voted down for it.

The bottom line is that almost all big name tech companies want subscription only customers. They make more money this way and have fewer proprietary issues with the customer as the customer now owns nothing. The music on the phone - Apple’s - movies on the phone Apple’s - your photos, held for ransom in the cloud if you piss them off.

In the end the customer owns nothing but pays Apple for everything, don’t like how they operate then you get kicked to the curb with nothing. You have a content license for nothing as they own the hardware it’s on. Indie creators are forced out of the licensing market individually and give up their rights to get in the platform. All hail big tech!

It all sucks and Apple is not alone here. Welcome to the future.

It has also been a big part of the past. Subscriptions are nothing new when it comes to content or even hardware. Streaming services are largely just following the cable/satellite television model, premium channel model, etc. that has been around for decades and decades and this included renting/leasing of the hardware. Landline phones were also often rented/leased as part of one’s telephone service. Movie rentals, corporate hardware/equipment leasing, etc. None of this is new.

What the internet has done is made it easier to deliver content which has allowed some things to be offered at a lower cost (even "free"), for a varierty of reasons, than they were in the past.

Subscription/leasing allows companies to expand their customer base by offering a cheaper (per month) alternative but I think outright hardware ownership will continue to be the primary choice for consumers.