Like installments, but better: Apple will sell the iPhone by subscription

If you think that the iPhone is considered an expensive smartphone only in Russia, you are wrong. Even in the United States and in rich European countries, 1,000 dollars or euros is money. Therefore, Apple cannot afford to increase new iPhone pricesbecause many will simply refuse to buy them. But it is impossible to further develop the devices, selling them at the same price as, say, 5 years ago. So the company now faces a tough choice and decides how to ensure that it spends less on iPhones and earns more.


Apple has decided to start selling the iPhone by subscription. Himself


It turns out that keeping last year’s processor in the iPhone 14 and 14 Max and possibly eliminating the periscope cameras in the iPhone 14 Pro and 14 Pro Max aren’t the only ways to save on their cost. Cupertino has planned a whole series of measures to increase marginality. One of them is the distribution of iPhones according to the subscription model.

iPhone subscription – is it profitable?

According to Bloomberg, Apple intends to start selling iPhone by subscription. Consumers will be able to borrow devices without paying the full amount immediately, but paying as they go, like Apple Music or Apple TV+. The company has long been called for such a move, but for some reason ignored those calls for many years. But now, apparently, the situation simply left him with no other choice.

Generally iPhone subscription very similar to the installment plan, but with a number of differences that make it more profitable for the consumer.

  • Firstly, the subscription does not need to be approved by the bank, which means that there will be fewer refusals due to a bad credit history;
  • Second, Apple’s Direct Subscription will be less repulsive to people who feared dealing with banks;
  • Thirdly, in the case of a subscription, there may not even be a first payment, which means that the share of spontaneous purchases will increase significantly, while the consumer will be able, even without money, to take the here and now.


iPhone by subscription will become the largest source of revolving payments for Apple. For the first time, the company will allow users to subscribe not only to digital services, but also to equipment. The project is still in development, according to our sources, who requested anonymity, as the initiative has not yet been officially made public. But it’s likely to launch in late 2022 or very early 2023, Bloomberg writes.

Yes, clearly Apple will have to protect itself somehow. At least iPhone damageat hand. Cupertino clearly does not care about non-payments, because such smartphones can simply be turned off remotely, as happens, for example, with Yandex.Stations taken by subscription. But from the possible failure of the devices during operation, insurance will obviously be required, which will be passed on to the consumer, including in the total cost.

Is it profitable to buy an iPhone – is it possible

Current iPhone subscriptions in Russia are very unprofitable. But Apple has a chance to change everything

Fundamentally, iphone insurance is a common practice. This is how the lessor – and a smartphone subscription, in fact, a leasing – protects his property. After all, the device transferred to you for temporary use does not belong to you. Under the terms of the contract, you agree to return it after a certain period. In Russia, it is usually 6 months or 12. Apple is likely to set wider limits, giving users more leeway, but this will not fundamentally change anything. The smartphone does not belong to you and will not belong to you.

In this regard, the question becomes relevant, but how much will this pleasure cost. Because today get an iPhone by subscription profitable is almost impossible. Tenants are gouging users threefold by calculating the cost of a monthly payment based on totally out-of-market rates. As a result, you have to pay about the same every month as for a loan, but in the end, your smartphone is still taken away from you. The benefits are frankly questionable.


How Apple will solve this problem, in principle, is clear. Since it manufactures its own smartphones, it will have more opportunities to reduce the price.

  • First, Apple doesn’t buy smartphones from distributors and pay extra money, which then usually constitutes the retail price, which in turn is pushed back by backers;
  • Second, Apple will then collect the smartphones that have been in its hands and send them for recycling, and the resulting components can be reused;
  • Thirdly, Refurbished iPhonecollected from smartphones that have been used, can be resold, enjoying a double benefit.

It’s obvious that Sale of iPhone by subscription would be beneficial for both parties. Apple will be able to sell more smartphones because the consumer will not pay attention to the price. After all, what difference does it make to know how much an iPhone costs if you pay half as much for it? And the consumer, in turn, receives a more profitable and convenient method of payment for himself, in which the full amount does not need to be emptied immediately, as well as the ability to upgrade the device every year towards a new, in fact, receive Two iPhones for the price of one.