The final time we checked in on Apple’s plan to create a subscription service for brand spanking new iPhone fashions it was early final yr and on the time, Bloomberg’s Mark Gurman stated that
Apple was nonetheless engaged on the plan which he stated could be launched “ultimately.” Quick ahead to at this time and Gurman had one thing fully new to say concerning the iPhone subscription plan that Apple was nonetheless engaged on.
Citing individuals aware of the plans, Gurman says that
Apple has stopped work on creating the iPhone subscription service. The concept was to permit customers to subscribe to the service and pay a month-to-month subscription payment that will enable them to obtain a brand-new iPhone every year. The workforce that was engaged on the idea disbanded and was assigned to different tasks that
Apple is engaged on in accordance with individuals within the know who requested to stay nameless as a result of the work was confidential.
Whereas the venture was nonetheless in growth, it was overseen by the Apple Pay group. The latter workforce earlier this yr additionally closed an in-house “purchase now, pay later” service that allowed customers to repay purchases over a number of months. However now Apple is directing customers to make use of third-party installment plans as an alternative.
When
Bloomberg Information first reported in 2022 about Apple’s plan to launch an iPhone subscription service, Apple hoped to start out it on the finish of that yr. However numerous points together with software program bugs led Apple executives to push again the beginning of the service earlier than it will definitely determined to scrap it. The plan would have allowed prospects shopping for an iPhone to have a month-to-month payment billed to the account used to pay for apps and subscription companies. Annually, the purchasers would obtain the most recent iPhone mannequin.
Apple already has an Improve Program that enables subscribers to get a brand new iPhone yearly. | Picture credit-Apple
The subscription service would have been dealt with in-house by Apple and the loans supplied to purchase iPhones would have been floated by the corporate. Testing it out earlier this yr, Apple allowed members of its Apple Pay workforce to attempt it together with these engaged on App Retailer billing and Apple’s on-line retailer. Apple already runs the iPhone Improve Program which divides the price of an iPhone over two years. After making 12 month-to-month funds, subscribers can commerce of their present iPhone for a brand new mannequin.
Contemplating that the iPhone is Apple’s most vital product accounting for over half of the corporate’s annual income, the tech large hoped the subscription plan would enhance gross sales of the machine which might generate extra recurring month-to-month income. Growing iPhone gross sales would result in growing purchases of Apple Providers. With growth of the iPhone subscription plan halted, Apple may begin growing how usually it promotes the iPhone Improve Program.
