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Apple is reportedly giving up on plans to turn the iPhone into a subscription
In a move that may come as a surprise to some, Apple has allegedly decided to abandon its plan to offer iPhones for monthly subscription payments. This development comes after reports surfaced in 2022 that the tech giant was exploring this option.
According to Bloomberg, the hardware subscription was intended to work similarly to existing payment methods like the iPhone Upgrade Program or Apple Card Monthly Installments. These programs allow users to pay off a new phone or other Apple device through monthly installments, with some options providing the ability to upgrade to a new device without changing the subscription fee.
However, it appears that Apple’s plan would have required the company to manage payments and potentially follow regulations similar to those of credit card companies. This added scrutiny may have been an unappealing prospect for the tech giant.
Moreover, introducing a hardware subscription could have put additional strain on Apple’s relationships with carriers. As it stands, users can purchase iPhones from T-Mobile or Verizon through installment plans that are technically different but feel like subscriptions when paying monthly.
It is worth noting that Apple’s hardware subscription was never officially announced, but its abandonment reflects a potential larger retreat from the challenges of financial services. In June 2024, Apple Pay Later was discontinued and replaced with access to Affirm loans in Apple Pay as part of iOS 18. Additionally, it appears that Apple Card is reportedly in limbo as the company seeks a partner to replace Goldman Sachs.
The implications of this decision are still unclear, but one thing is certain: iPhone users will continue to have multiple options for purchasing their devices without committing to a monthly subscription plan.
Source: www.engadget.com
