As with any of its software services, Apple is working on a plan that would make owning its hardware more like owning an iPhone or iPad. Many industry insiders believe this would be a brilliant move by Apple because it could significantly boost sales revenue from Apple’s devices. According to the company’s financial statements, the iPhone is already the company’s most profitable product and accounts for nearly half of its revenues.
Customers will be required to pay a monthly subscription fee instead of making a one-time payment, which would represent a major shift in the company’s current sales strategy. Although similar to the usual instalment plan, which divides the device cost into equal monthly payments over a period of 12 or 24 months, this new programme will be distinct from the traditional model. There would instead be a fee, which has yet to be determined but will most likely depend on the model and type of device that is chosen.
In order to use any of Apple’s services, customers will have to create an Apple ID and an App Store account first. Details are still scarce, but the above plan is likely to make it easier for subscribers to switch to the latest devices than the exchange program currently supported by the company. While the newest model will benefit from wider adoption and a lower cost, older models will be more affordable.
It has been a few months since Bloomberg reported that the company had been working on hardware subscription plans before siding with them to bring in a “buy now, pay later” service. Subscription plans aren’t due until the end of 2018 or early 2019. A year earlier, in 2020, the company introduced its Apple One bundles and the AppleCare technical support program. iCloud storage and the TV+ and Arcade apps, as well as the Music and Fitness apps, are all included in the Apple One package.
For the time being, Apple only offers devices that can be purchased outright or on a payment plan. Carriers offer discounts on certain devices, such as the iPhone and iPad, and retailers offer seasonal discounts on various items throughout the year. It is possible that the subscription plan could substantially increase future revenues, which would represent a significant departure from the previously mentioned marketing strategies.