iPhone Hardware Subscription Model Delayed as Reported Engineering Set Backs Emerge

Apple is said to be working on a number of fintech-related payment solutions. One of which is reported to be an iPhone hardware subscription program. However, much like Apple Pay Later, engineering hurdles have affected its initial rollout.

According to Bloomberg‘s Mark Gurman, Apple is developing a new subscription program for iPhones. In the latest PowerOn newsletter (seen by 9to5Mac), Gurman goes on to describe this program as one that differs from the already available financing options. In the newsletter, Gurman says, “the monthly charge wouldn’t be the price of the device split across 12 or 24 months.” However, the new subscription will use a “yet-to-be-determined monthly fee that depends on which device the user chooses.”

This subscription model has not been announced by Apple as of yet. Unlike Apple Pay Later or its Apple Card Savings Account, the latter of which is likely to be a U.S. exclusive, the Cupertino company has been keeping its hardware subscription close to the chest. A fourth fintech solution is also said to be in development. This other unannounced project is said to be an “Apple Pay Monthly Installments” program.

The reason why many of these payment solutions have not been launched comes down to engineering delays. Apparently, Apple is working on an ambitious underlying platform known as “Project Breakout.” This platform is “one of the most ambitious parts of Apple’s finance efforts,” according to Gurman. It is the foundation of all of Apple’s aforementioned programs. Currently, many of Apple’s fintech solutions are looked after by third-party partners. Instead, Project Breakout will bring all “checks, approvals and transaction histories” under Apple’s roof.

As of when Apple’s solutions will begin to launch is anyone’s guess. Apple Pay Later looks to be the one that is closest to launch. Gurman estimates that it’ll launch in “March or April.” However, this is quite a departure from its initial launch which Gurman claims was supposed to be alongside the iPhone 13 in 2021 or the iPhone 14 last year.