The final time we checked in on Apple’s plan to create a subscription service for brand new iPhone fashions it was early final 12 months and on the time, Bloomberg’s Mark Gurman stated that Apple was still working on the plan which he stated can be launched “ultimately.” Quick ahead to as we speak and Gurman had one thing utterly new to say in regards to the iPhone subscription plan that Apple was nonetheless engaged on.
Citing folks aware of the plans, Gurman says that Apple has stopped work on developing the iPhone subscription service. The thought was to permit shoppers to subscribe to the service and pay a month-to-month subscription price that might permit them to obtain a brand-new iPhone annually. The staff that was engaged on the idea disbanded and was assigned to different tasks that Apple is engaged on in line with folks within the know who requested to stay nameless as a result of the work was confidential.
Whereas the mission was nonetheless in improvement, it was overseen by the Apple Pay group. The latter staff earlier this 12 months additionally closed an in-house “purchase now, pay later” service that allowed customers to repay purchases over a number of months. However now Apple is directing customers to make use of third-party installment plans as an alternative.
When Bloomberg News first reported in 2022 about Apple’s plan to launch an iPhone subscription service, Apple hoped to start out it on the finish of that 12 months. However varied points together with software program bugs led Apple executives to push again the beginning of the service earlier than it will definitely determined to scrap it. The plan would have allowed clients shopping for an iPhone to have a month-to-month price billed to the account used to pay for apps and subscription companies. Annually, the purchasers would obtain the most recent iPhone mannequin.
Apple already has an Improve Program that permits subscribers to get a brand new iPhone yearly. | Picture credit-Apple
The subscription service would have been dealt with in-house by Apple and the loans supplied to purchase iPhones would have been floated by the corporate. Testing it out earlier this 12 months, Apple allowed members of its Apple Pay staff to attempt it together with these engaged on App Retailer billing and Apple’s on-line retailer. Apple already runs the iPhone Improve Program which divides the price of an iPhone over two years. After making 12 month-to-month funds, subscribers can commerce of their present iPhone for a brand new mannequin.
Contemplating that the iPhone is Apple’s most vital product accounting for over half of the corporate’s annual income, the tech large hoped the subscription plan would enhance gross sales of the gadget which might generate further recurring month-to-month income. Rising iPhone gross sales would result in growing purchases of Apple Providers. With improvement of the iPhone subscription plan halted, Apple would possibly begin growing how typically it promotes the iPhone Improve Program.
