More than two years ago, there were discussions about Apple potentially launching a hardware subscription service for the iPhone, allowing users to pay a monthly fee for the privilege of upgrading to a new model each year. This concept seemed appealing, especially as subscription services have become increasingly popular across various industries.
However, it appears that this initiative is no longer underway. Fast-forward to December 2024, and Bloomberg reports that the planned iPhone subscription service has been permanently shelved.
It remains uncertain why Apple decided to abandon this subscription model before it ever reached consumers. A closer look at Bloomberg’s coverage suggests that it could have been a solid option:
“Instead of purchasing an iPhone in full or opting for an installment plan, users would have simply paid a monthly fee through their Apple account, the same account they use to download apps and services. This arrangement would enable them to exchange their iPhone for a newer model every year.”
Much like the now-defunct Apple Pay Later initiative, the hardware subscription was intended to rely on Apple’s financial infrastructure, utilizing loans provided by the company itself. Earlier this year, Apple tested the subscription service with employees from its Pay division, with teams involved in App Store billing and online retail participating as well.
Currently, Apple offers the iPhone Upgrade Program, which enables customers to make monthly payments for a new iPhone over a span of 24 months, with the option to trade in their device and upgrade after just 12 payments. Additionally, Apple provides interest-free monthly payments for purchases made with an Apple Card.
The now-abandoned subscription service seemed to be a more straightforward option compared to existing payment plans. Perhaps Apple decided against introducing yet another alternative to avoid complicating the purchasing experience for consumers. While more choices can be beneficial, the iPhone Upgrade Program largely accomplishes what Apple intended with its subscription service.
There’s always the possibility that Apple will revisit this concept and eventually roll out an iPhone subscription in the future. However, don’t expect it to launch alongside the iPhone 17 next year.
