Apple is reportedly working on a hardware subscription service for its iPhones and iPads and the service could launch at the end of 2022, Bloomberg reports. The iPhone accounts for Apple’s biggest source of sales but the company is looking to sell it and other hardware through a subscription service.
Apple wants to make purchasing an iPhone or an iPad through a monthly subscription just like it does with its iCloud and Apple Music service. Customer subscription for the hardware service will be tied to their Apple ID and the App Store they make purchases with. According to Bloomberg sources, the hardware subscription service would be different from an instalment program that let customers split the cost of a device over a 12- or 24-months period. Apple’s iPhone Upgrade Program currently allows customers to pay for the total cost of AppleCare and an iPhone across 24 months, and also the option to trade old devices for new ones.
Apple has a range of recurring subscription services which includes Apple Music, Apple TV Plus, iCloud storage, Apple Fitness Plus and Apple Arcade. In 2020, the company introduced an Apple One subscription which offers most of its services as a bundle.
According to the Bloomberg report, Apple has held preliminary internal talks about buddling the hardware subscription service with Apple One and its AppleCare plans. The monthly fee which is yet to be decided will be based on the type of device the customers choose. The service could be delayed into 2023 or shelved according to people familiar with the matter.
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Apple made around $192 billion from iPhone sales alone in 2021 and the company will be looking to increase sales and revenue if it eventually launches the hardware subscription service.
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