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Apple Working on Hardware Subscription Service for iPhones, Other Products, Will Likely Charge Customers a Monthly Fee for Ownership

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Similar to how Apple charges customers a monthly fee for using its services, the company is said to be working on something similar for iPhones and other hardware products.

Just Like Subscribing to Digital Services, Customers Could Pay a Monthly Fee to Own an iPhone or Any Other Hardware Product

People familiar with the matter have informed Bloomberg that Apple’s plan is currently in development. The individuals who informed the source about these plans have asked that their identities remain anonymous. Just as how users pay a monthly or yearly fee for using an app or any other service, the same approach will be applied towards owning an iPhone or iPad.

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In the U.S., Apple currently allows customers to finance nearly hardware purchases using the Apple Card. In addition, customers can upgrade to their desired iPhone using the iPhone Upgrade Program and get a newer model every 12 months. The new hardware subscription service is expected to launch by 2022, or in 2023, depending on how things fold. This service could get tied into Apple One and AppleCare bundles.

According to Bloomberg, this hardware subscription service will be Apple’s ‘biggest push yet’ into recurring sales. Given how inflation has affected the world and has limited the purchasing power of customers, it becomes difficult owning a brand new iPhone, iPad, or an even more expensive Mac model by paying the upfront cost.

Though carrier services allow customers to pay a monthly fee for iPhones, it does not apply to Macs or other products, so this service will primarily cater to those who do not have the financial capacity to immediately pay a small fortune to acquire the latest hardware.

This hardware subscription service could easily allow Apple to increase ownership of various products while also increasing adoption for different operating systems. We expect the service to be available in the U.S. first, then be branched out to other regions. Given how Apple enjoys massive sales in the U.S., it makes perfect sense to launch the service in the United States.

Perhaps Apple’s competitors will take note of the company’s efforts and aim to provide something similar in the coming months.

News Source: Bloomberg

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