Apple Scraps Plans For Long Rumored Iphone Hardware Subscription Service Gurman

The rumors first surfaced a few years ago, and Apple was initially supposed to launch its hardware subscription service by the end of 2022. The tech titan was planning to build a completely in-house subscription model, rather than collaborating with any third-party banking institutions. However, the plan was then pushed to 2023 and beyond. The project faced several setbacks due to software bugs, regulatory concerns, and other issues. Now, the team that was working on the hardware subscription model has shifted to other projects.
The iPhone hardware subscription model would allow people to own an iPhone, even without having sufficient funds for an upfront payment. After all, it’s easier to grab an expensive iPhone model on a monthly payment basis. Also, Apple was hoping to sell more iPhones with the subscription model and multiply its revenue. After all, the iPhone is the biggest moneymaker for Apple, which drives more than half of the company’s total revenue. For years, Apple has been trying hard to come up with another smash hit, but it hasn’t found any product as profitable as the iPhone.
The Cupertino tech giant already offers the iPhone Upgrade Program which spreads the cost of a device over a 12- or 24-month period. However, the planned subscription service would allow for an ongoing monthly fee for the subscription period.
This move to scrap the hardware subscription service project came the same year as Apple discontinued its Apple Pay Later program, which allowed customers to finance their Apple Pay purchase in four equal payments across six weeks without any additional fees or interest. In fact, the latest iOS 18 added support for third-party Apple Pay financing from partners like Klarna and Affirm.