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The iPhone maker wouldn’t be the first company to push hardware subscriptions. Apple accounts are typically tied to a user’s credit or debit card. It would likely also be an option at checkout on Apple’s online store and at its physical retail locations. The subscriptions would likely be managed through a user’s Apple account on their devices, through the App Store and on the company’s website. Apple launched the bundles in 2020 to let users subscribe to several services - including TV+, Arcade, Music, Fitness+ and iCloud storage - for a lower monthly fee. The company has had preliminary discussions internally about attaching the hardware subscription program to its Apple One bundles and AppleCare technical support plans.
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Nonetheless, the subscription service is still expected to launch at the end of 2022, but could be delayed into 2023 or end up getting canceled, the people said.īloomberg reported last year that the company has been working on a “buy now, pay later” service for all Apple Pay transactions. It historically releases new versions of its major devices, including the iPhone, iPad and Apple Watch, once a year.Īpple has been working on the subscription program for several months, but the project was recently put on the back burner in an effort to launch a “buy now, pay later” service more quickly. The company has discussed allowing users of the program to swap out their devices for new models when fresh hardware comes out. Rather, it would be a yet-to-be-determined monthly fee that depends on which device the user chooses. The program would differ from an installment program in that the monthly charge wouldn’t be the price of the device split across 12 or 24 months. Apple is planning to let customers subscribe to hardware with the same Apple ID and App Store account they use to buy apps and subscribe to services today. The idea is to make the process of buying an iPhone or iPad on par with paying for iCloud storage or an Apple Music subscription each month. It could help Apple generate more revenue and make it easier for consumers to stomach spending thousands of dollars on new devices.Īlready, the iPhone is Apple’s biggest source of sales, generating nearly $192 billion last year - more than half the company’s revenue.Ī spokeswoman for Cupertino, California-based Apple declined to comment on the company’s plans.
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Adopting hardware subscriptions, akin to an auto-leasing program, would be a major strategy shift for a company that has generally sold devices at full cost outright, sometimes through installments or with carrier subsidies.