This new service will make it easier for people to upgrade to a new iPhone, through a monthly subscription model. Also, this will let the company have a steady revenue stream from hardware sales. Though there are no pricing details available yet, Bloomberg stated Apple may roll out this program by this year’s fall or early next year.
Apple’s Hardware Subscription Model
Except for SE models, all other iPhones are unbelievably expensive. Yet, Apple fans flock around whenever there’s a new launch of these. While it’s still satisfying the premium community, the mid-range and budget community is stagnant due to its high prices. Thus, to make its premium iPhones affordable, Apple may soon launch a monthly subscription model to buy the new hardware. As per Bloomberg, plans of such are being developed by Apple to roll out the new model by this year’s end, or early 2023. Similar to the iPhone upgrade program where people pay a monthly cost to acquire an iPhone and upgrade when you want by paying the difference, you can soon buy a new iPhone on monthly basis. Except that you’re not bound to any fixed term of installments. And, you may be able to manage the subscription through your Apple account. Alongside the new iPhone, this model includes supplying regular software updates. The pricing of this expected model isn’t known yet, but we expect that to be around the current iPhone upgrade program, which is more than $35 a month covering yearly iPhone upgrades and AppleCare+. Selling the hardware on a monthly subscription basis is logical too, as Apple notes significant ups and downs of seasonal sales cycles. After all, it’s seeing good growth and a steady revenue stream from services like Apple Music, TV+ and Fitness+, and adding this new plan will only make it better for the company.
