Apple Inc. (AAPL) is building a hardware subscription service, which will allow customers to “subscribe” and get an iPhone or any other Apple devices, as part of their subscription, according to Bloomberg reports. This new subscription will work similar to the way ongoing Apple subscriptions like iCloud function.
As part of the subscription services, customers will have to fork out a monthly subscription fee and get access to a device for the subscription period. This scheme works out well for those customers who do not have sufficient funds to purchase an expensive iPhone, iPad or Mac at one go, but who can afford a monthly price for the device. This scheme is expected to bring in more sales for the iPhone maker.
Apple has launched this latest program with the aim of making the process of purchasing an iPhone or an iPad same as the procedure of buying iCloud storage or paying for an Apple Music subscription, with customers being able to subscribe to the hardware with their Apple ID and App Store account.
As per reports, Apple is expected to allow subscription users to exchange their existing devices for updated models when refreshed products are released. The company has also held internal discussions to combine the subscription program with Apple One bundles and AppleCare support plans.
Customers would be able to purchase a hardware subscription on their devices, through the App Store, company’s website, or at an Apple online store. According to Bloomberg, the subscription service is Apple’s “biggest step forward” into recurring sales, but the project is still in the works and very little is known about it at the present.
The company had been working on the project for some time but it was put on the backburner when Apple started work on a separate ‘buy now, pay later” scheme, which will allow customers to pay for Apple Pay purchases in different instalments over a period of time.
Apple has plans to implement hardware subscriptions by the end of 2022, but it could be delayed into 2023 or completely cancelled if the company comes up with a new scheme.
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