Apple Reportedly Abandons Plan for iPhone-as-a-Subscription
According to Bloomberg, Apple has shelved a project that would have allowed people to pay a monthly subscription fee in exchange for yearly iPhone upgrades. According to Bloomberg, the Cupertino company has shelved a project that would have allowed people to pay a monthly subscription fee in exchange for yearly iPhone upgrades.
Apple first started concocting the scheme to change the way people buy phones back in 2022. Bloomberg reported at the time that Apple’s theory was to make phone ownership more like leasing a vehicle. Consumers would be charged a monthly flat rate for the use of the device, rather than paying a lump sum upfront or over ten years. Subscribers could upgrade when a new iPhone is released. The plan would not change much for many consumers. They might just pay a monthly fee to upgrade their phone. They would not own their phone outright, but most people have to pay for it over a period of two or three years. By the time the payments are complete, the device will lose a lot of value. Subscribing to a phone plan would make it easier for people to upgrade their devices and get them off the shelves. The subscription model would also push people who currently pay their mobile carriers to upgrade their devices onto Apple’s side, which could irritate some telecom executives. YouGov’s survey of 2023 revealed that 7/10 Americans would like to keep their phones for at least 2 years. About 1/6 would want to keep their phones for 5 or more years. A Gallup survey found more than half of respondents said they only upgrade phones when they absolutely have to, either because their current device has stopped working or has become obsolete.
Now, that might change if Apple were to successfully upend the consumer relationship with their device. They might be more open to upgrading if they are leasing a piece of hardware and not a phone. For now, iPhone owners will continue to pay a monthly fee to a carrier they hate until the phone is theirs.
