Apple Stops Plans to Introduce iPhone Hardware Subscription Service

Apple is reportedly stopping its plans to introduce an iPhone hardware subscription service. Rumours surrounding a service that would allow customers to subscribe and receive a new iPhone each year began swirling in 2022.

The Cupertino company is said to have given its plans to launch an iPhone hardware subscription. Bloomberg’s Mark Gurman claims that Apple is no longer pursuing such plans. Back when the initial story broke, the subscription services were said to have a simple system that would allow subscribers to pay a monthly fee in exchange for device access during the allotted window.

According to the report, Apple is halting the development of the subscription service due to concerns over regulatory issues. Potential software bugs and other persistent issues are also said to be contributing factors. At this point, the team responsible for creating the iPhone hardware subscription service is said to have moved on to other projects.

In an ideal sense, customers could spread out the cost of a brand-new iPhone over 12 months rather than pay the full amount at once. Rather than a payment plan, similar to the ‌iPhone‌ Upgrade Program, subscribers would pay ongoing monthly fees to retain the subscription rather than payment installments. Apple’s ‌iPhone‌ Upgrade Program currently supports installment plans of either 12 or 24 months.

Earlier this year, Apple discontinued its ‘Apple Pay Later’ service months after launching it in the US. In another example of the company attempting to streamline payment plan options, Apple decided to no longer support Apple Pay Later. The service allowed users to take loans on purchases from $50 to $1,000 that can be paid over six weeks across four installments.