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Apple Abandons Plans to Offer iPhone Subscription Option
In a surprising move, Apple has reportedly decided to shelve its plans to introduce a monthly subscription service for iPhones. According to Bloomberg, the company was exploring the idea of offering users the option to pay for their iPhones in installments, with the possibility of upgrading to new devices without having to change their subscription fees.
The rumored plan would have allowed users to pay off their iPhone purchases through an Apple account, using existing payment methods. This approach aimed to incentivize customers to upgrade more frequently and increase recurring revenue for the company. However, it appears that Apple has decided against pursuing this initiative due to regulatory concerns and potential strain on relationships with carriers.
The hardware subscription plan was never officially announced by Apple, but its abandonment reflects a larger retreat from the challenges of financial services. This decision comes after the shutdown of Apple Pay Later in June 2024 and replaced with access to Affirm loans within Apple Pay as part of iOS 18. Additionally, the Apple Card is reportedly being put on hold as Apple searches for a new partner to replace Goldman Sachs.
It seems that Apple has ultimately decided not to pursue this subscription model due to the potential regulatory scrutiny it would have required. This move likely stems from the company’s unwillingness to navigate the same regulations as credit card companies, which would have added an extra layer of complexity to their financial services offerings.
The iPhone Upgrade Program and Apple Card Monthly Installments will still be available for customers who prefer these options for paying off their iPhone purchases.
Source: www.engadget.com
