While still in development, the venture fell under the purview of Apple Pay’s management. Earlier this year, the company’s latter workforce introduced an in-house “buy now, pay later” service, enabling customers to settle purchases over multiple months. Apple is now steering customers towards utilizing third-party financing options as a viable alternative.
Apple offers its customers a compelling improvement program, enabling them to upgrade to the latest and greatest iPhone models on an annual basis. | Picture credit-Apple
The proposed subscription service would have likely been managed internally by Apple, with the company providing financing options for customers to acquire iPhones through a securitization of loan products. Earlier this year, Apple granted a select group of employees from its Apple Pay team the opportunity to test the feature alongside colleagues working on App Store billing and online store initiatives. Apple operates the iPhone Upgrade Program, a payment plan that spreads the cost of an iPhone over 24 months. Upon completing 12 months of month-to-month payments, subscribers are eligible to upgrade to the latest iPhone model.
Considering the iPhone’s pivotal role as Apple’s most profitable product, generating more than half of the company’s annual revenue, the tech giant aimed to boost sales of the device through a subscription plan, seeking to create additional recurring monthly income streams. As iPhone sales continue to thrive, the demand for Apple Services will naturally follow suit. As iPhone subscription plans experience stagnant growth, Apple is poised to revitalize its promotional efforts for the iPhone Upgrade Program.
