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Apple Abandons Plans to Offer iPhone Subscription Model
In a surprising move, Apple has decided to abandon its plans to offer a hardware subscription service for its iPhones. The company had been exploring the idea of allowing customers to pay for their iPhones in monthly installments, similar to existing options like the iPhone Upgrade Program or Apple Card Monthly Installments.
According to sources, Apple’s proposed subscription model would have allowed users to upgrade their devices more frequently, potentially increasing the company’s recurring revenue. However, it appears that the complications and regulations surrounding financial services proved too great for the tech giant to navigate.
As reported by Bloomberg, the hardware subscription service would have required Apple to follow the same regulations as credit card companies, which could have been a major red flag for the company. Furthermore, introducing such a model may have put strain on Apple’s relationships with carriers.
While the iPhone 16 can still be purchased from T-Mobile or Verizon using an installment plan, it seems that Apple has decided to prioritize other financial services and focus on more straightforward revenue streams.
It remains unclear what impact this decision will have on Apple’s overall strategy. The company had previously shut down its Apple Pay Later service in June of this year and replaced it with access to Affirm loans through Apple Pay. Additionally, the Apple Card is reportedly in limbo as the company searches for a new partner to replace Goldman Sachs.
The abandonment of these plans suggests that Apple may be reassessing its approach to financial services and opting for more traditional revenue streams instead.
Source: www.engadget.com
