Apple is rumoured to be working on a subscription model for iPhones and iPads.
According to Bloomberg sources, this has been in the works for “several years” and could be revealed by the end of the year if it isn’t completely shelved.
Apple’s business already relies heavily on subscription models, but these have only been made available as part of the company’s various software services, such as music, TV, fitness, and gaming, until now. There is an Apple One platform that includes many of these features as well.
As a result of this new venture, Apple would be making its first foray into hardware subscription sales.
A 24-month payment plan that includes both AppleCare and an iPhone is available through the company, and customers have the option to trade in their device after making a certain number of payments over the course of one year if they choose to use it.
However, this is not a hardware subscription, but rather a way to spread the cost of purchasing a new iPhone. An ongoing monthly fee is what the new subscription model will look like when it comes to fruition.
When it comes to offering more convenient ways for iPhone fans to get their hands on the latest models, the company’s primary goal is to open up a new revenue stream. As of this writing, the iPhone 13’s base model costs £779, which works out to $32.45 per month.
Apple’s iPhone accounts for more than half of the company’s revenue; the next highest segment is Apple services, which only accounts for 18.7 percent of the company’s total revenue.
The iPhone accounted for nearly $192 billion in total revenue last year for the business.