Apple is reportedly planning an iPhone hardware subscription service

[OneMoreThing...]

Apple's iPhones and other devices have become increasingly expensive, and the company may be using alternative sales models to help soften the blow. Bloombergsources claim Apple is developing a subscription service for the iPhone and other hardware. Akin to the iPhone upgrade program, you'd pay a monthly fee rather than an up-front cost or financed instalments. You'd "likely" manage the subscription through your Apple account.

Full details of what would be included weren't available as of this writing, but the service would include regular upgrades and launch in either late 2022 or early 2023. Pricing is also unknown. Apple's current upgrade program currently requires $35 or more per month to get both yearly iPhone upgrades and continuous AppleCare+ coverage.

Apple has already declined to comment. The company hasn't been shy about moving toward subscriptions, mind you. Digital services like Apple Music, TV+ and Fitness+ have accounted for a rapidly growing slice of the firm's revenue, and have helped soften the ups and downs of seasonal sales cycles as well as a relatively stagnant phone market. A broader hardware subscription offering would expand this strategy — Apple could count on a steadier revenue stream, particularly from customers who'd otherwise wait longer to replace their gadgets.

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[MacInWin]

Before the "Subscriptions are the spawn of Satan" folks show up, let me say that basically this is what I have been doing for a few years now. The Apple upgrade plan lets me pay 1/24th of the cost of the iPhone and AC+ for it each month, basically at zero interest. After 12 months the device becomes eligible for upgrading. Apple releases a new iPhone every 12 months or so, so I do an immediate upgrade and swap for a new device. The amount I pay may change, depending on the cost of the new device, but the old account is closed as soon as I return the older device. By keeping up at the 12 month point, I'm basically buying a new phone every year for 50% of the cost (12 of 24 payments). I only pay for the LAST iPhone.

Effectively, I'm renting a brand new iPhone every year. I like the new features and the AC+ is insurance against it being dropped or somehow broken and me having to start over.

I think if Apple did start a rental program I'd have to look at it very carefully to see if I want to change. I'm just hoping that if they do start renting the upgrade program won't go away. I fear it will.

 

[Slydude]

I thought about going that route when I bought my 12 Pro Max. I didn't because I tend to try to keep a phone for several years before I replace it. Then again, my last several phones have only gone 2 or 3 years before needing a replacement. Replacing every year might n to be a bad idea.

 

[chscag]

I'm just the opposite. I keep my current iPhone for 2 to 3 years and when I get the itch to buy a new one, I do so. Usually I replace my wife's phone first since she's fairly hard on them. We then donate the older phones to a family in need or a friend that can't afford to buy one.

 

[MacInWin]

Sly, the math works pretty well. Say you get a total package for, just for ease of calculating, $1200 for iPhone and AC+ combined. You would pay $50/month (no interest) for 24 months. But at the 12 month point, trade in for the next year's version, send the iPhone back to Apple and the deal stops. The new one is in the same price range, or maybe a bit more or less, so the payment continues. But now for that same payment you have a brand new phone. Lather, rinse, repeat. You only pay full price for the LAST one in the queue. I've been through 3 cycles of that (maybe more, I don't remember how far back I started). Basically, I get a new phone every year, with whatever is the "new" thing (CPU, 5G, 6G, camera, screen, etc.) every year for half the price of buying it outright. And up to now Apple has only wanted the phone back, not the power supply or cables, so I have a nice collection of those as spares.

Not for everybody, but I like it.

 

[Slydude]

I probably should have done that this time. Although i'm not complaining about the $400+ I got for an iPhone X with wonky audio.

If I had paid closer attention and realized it was no interest i might have jumped at the deal.