Apple is working on a subscription hardware service to buy some of its products, reports Mark Gurman (Bloomberg), one of the most reliable sources on the future products of the Cupertino company. The proposal, which is still in the planning stage, will allow you to get an iPhone or iPad by paying a certain monthly amount.
If it materializes, it would be Apple’s biggest bet in terms of the recurring sales model it has successfully promoted in its service department. Remember that the latter has become an important source of income for the company in recent years. However, this division currently relies on entertainment services and business tools.
It is important to mention that Apple already has some experience with similar put options. In the United States, it is possible to buy any device from the company by paying an amount each month, all thanks to the Apple Card. In addition, in many countries there is also the iPhone upgrade program, with which interested parties can get a new iPhone for 12 fixed monthly payments – and renew it every year. Both were possible thanks to Apple’s association with several banks.
How does the subscription hardware service differ from the alternatives described above? Fundamentally, hiring would be done directly with Apple, without intermediaries in the process. It would be almost as easy as subscribing to Apple Music, for example. Additionally, those run by Tim Cook would have the option of including other services in the package; like AppleCare and AppleOne (which includes Apple Music, Apple TV+, Apple Arcade, iCloud+ and Apple Fitness+).
Although the company is still analyzing and planning how the subscription will work, Gurman thinks there is a chance to see it soon. end of 2022. However, he does not rule out that its launch will be postponed until 2023. Another question that remains in the air is: in how many territories will it be available? Given the strategy they have followed with certain software services, it would not be surprising if availability, at least for the first few months, was limited to the United States.
We still have a lot of details to know about Apple’s subscription hardware service. However, it is now interesting to see how those of Cupertino invent new ways to boost their services division. The growth of this has been steady but, at present, there are still many areas of opportunity to explore.
Of course, a hardware subscription would be great for people who, for one reason or another, can’t afford to pay full price for an iPhone or iPad upfront. In many countries, mainly in Latin America, where smartphone prices have exploded, customers have recourse to financing from banks, or to operator packages which reduce the initial cost. Apple would cover the needs of this market, which is very large.
I am Bhumi Shah, a highly skilled digital marketer with over 11 years of experience in digital marketing and content writing in the tech industry.