Apple is reportedly working on an iPhone subscription service

The tech giant has a subscription service for iPhones and other hardware in the works.

Apple is reportedly planning to unveil a subscription service for its iPhones and other devices, a change that will make owning an iPhone or iPad like paying for a monthly music subscription.

“People with knowledge of the subject,” he said Bloomberg that the project, still being finalized, will allow Apple users to subscribe to hardware rather than just digital services. The sources refused to be identified as the service is still secret.

An Apple spokesperson declined to comment and called the report “speculative”.

Under the tech giant’s new scheme, it will move from selling devices at full price or via monthly plans with various carriers, to implementing a hardware subscription service similar to a car leasing program.

The rationale behind the service is to make buying new hardware akin to paying for iCloud storage. Consumers can subscribe to devices with the same information they use to buy apps and potentially trade their hardware for newer models when they are released.

The program would differ from a regular mobile phone plan in that it would not be the price of the hardware split into 12, 24, or 36 months. Instead, it would be a monthly fee (not determined as at the time of publication) based on the hardware chosen by the Apple user.

There is no denying that the program could help Apple get more revenue and make it easier for users to cope with spending a lot of money on new hardware. In 2021, the iPhone was the largest revenue boost for Apple, totaling nearly $ 192 billion (AU $ 255 billion).

Second Bloombergthe new hardware subscription service is expected to be launched by the end of 2022 or 2023 but could be canceled completely.

Apple isn’t the first organization to adopt a hardware subscription model. Google has also tried a similar tactic with business users of its Chromebook laptops, and recently Peloton Interactive Inc. tested a subscription model that allows its customers to rent bikes and fitness content for between $ 60 and $ 100 per month.

When contacted by Apple spokesperson said the hardware subscription model was “speculative, so Apple has no comment to share.”

Originally released as Apple it would work on an iPhone subscription service