What just happened? Apple is said to be developing a hardware subscription service that would grant customers access to devices like the iPhone and other gadgets in exchange for a monthly fee. The tech giant already operates the iPhone Upgrade Program, a similar service in which customers can upgrade to a new iPhone after making 12 monthly payments. Presumably, the new offering could include other hardware like earbuds, the Apple Watch or the iPad, or bundle services like AppleCare and Apple One.
Bloomberg described the subscription service as Apple's biggest push to date into automatically recurring sales. The program is being actively developed though no other specifics were mentioned.
The service could make Apple products accessible to more buyers, especially those with lower incomes that can't afford to buy Apple devices outright or those who don't have good enough credit to qualify for financing or the Apple Card.
We also don't know how the service would impact the dynamic between Apple and wireless carriers. Could carriers stand to lose money by being taken out of the buying loop?
Other variables that could make the service interesting include AppleCare and Apple One. Bundling both with the hardware subscription service at a discount could make each individual product more attractive.
Would you have any interest in such a subscription service, or are you content with currently available buying options? The new hardware subscription service could launch by the end of this year, or sometime in 2023.
Image credit Drew Coffman, David Svihovec