December 19, 2024 – Apple has scrapped its plans to introduce a hardware subscription service, according to a report by Bloomberg’s Mark Gurman. The proposed service was designed to allow customers to “subscribe” to a new iPhone every year through monthly payments.
Gurman had previously revealed in 2022 that Apple was exploring a hardware subscription model. The goal, he said, was to create a seamless system enabling users to access devices via monthly fees during the subscription term.
This subscription-based iPhone service was intended to cater to consumers who cannot afford the high upfront cost of an iPhone, offering them the device through a monthly payment plan. Although Apple already has an iPhone Upgrade Program that spreads the cost of the device over 12 or 24 months, the planned subscription service differed by featuring a continuous monthly fee structure rather than payments completed within a fixed period.
However, after two years of development, Apple halted the project in recent months due to regulatory concerns, software vulnerabilities, and other issues. The team responsible for developing the subscription service has been disbanded and reassigned to other projects. It’s worth noting that Apple has streamlined its payment services this year, shutting down the Apple Pay Later installment payment service, which launched less than a year ago.
As a result, Apple will not introduce a business model similar to “renting” iPhones in the near future, and customers will still need to acquire devices through traditional purchase or installment payment methods.
