Bloomberg reports that Apple is allegedly working on a new hardware subscription program that will allow consumers in the company’s ecosystem to upgrade their devices to the latest models more via easy installments.
Currently, the tech giant offers iPhone Upgrade Program through Citizens One Personal Loans that lets users spread the cost of an iPhone over 24 months and upgrade to the new iPhone model every year. Apple Card users can also pay for a device via interest-free monthly installments spread over 24 months (for iPhone and Apple Watch) and 12 months (for iPad and Mac). Reportedly, the company is also working on the “Apple Pay Later” service to pay for devices in monthly installments plans.
However, the new hardware subscription program is claimed to be different than the aforementioned payment plans. Tied to users Apple ID, the new program will make it even easier to buy the latest products.
Apple’s new hardware subscription program will be integrated with users’ Apple ID
Unlike the company’s installment programs, the alleged hardware subscription program will be integrated with an Apple account and is expected to be simpler to manage than installment plans or carrier programs because Apple IDs are tied to users’ credit or debit cards. And more importantly, the monthly subscription fee will not be the same as the price of a device split over 12 or 24 months, it will be determined by the product purchased.
The idea is to make the process of buying an iPhone or iPad on par with paying for iCloud storage or an Apple Music subscription each month. Apple is planning to let customers subscribe to hardware with the same Apple ID and App Store account they use to buy apps and subscribe to services today.
The subscriptions would likely be managed through a user’s Apple account on their devices, through the App Store and on the company’s website. It would likely also be an option at checkout on Apple’s online store and at its physical retail locations. Apple accounts are typically tied to a user’s credit or debit card.
People familiar with the matter say that the new program might launch later this year, early 2023 or it might be scrapped altogether. If the Cupertino tech giant eventually launches the new hardware subscription program, the report expects it to boost iPhone sales by ten folds. iPhone sales already make up more than half of the company’s total revenue.
