You Can Now Buy iPhones Via A Subscription Service?
Would you opt-in to an iPhone subscription service if it meant always having access to the newest phone?
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iPhones are available almost everywhere, but the newest models are often too expensive for the average customer. Now, Apple wants to enroll in an iPhone subscription service to aid its consumer base. This service would include both iPhones and iPads. Though the plan doesn’t have a release date, it’s speculated this subscription service could start as early as next year.
This unique plan from Apple shouldn’t be a complete shock since the tech company has been issuing many types of payment plans over the past several years. With applications like Apple Music, Apple News Plus, and Apple Fitness Plus, the company has pushed for recurring payment plans to get consumers continually onboard. This progression towards monthly and yearly payment subscriptions has influenced Apple’s upcoming iPhone subscription service.
Many of Apple’s initiatives in the past mirror its impending iPhone subscription service. In 2015, the company began an iPhone Update Program which worked on a similar payment plan. Customers could pay for the amalgamate cost of AppleCare and a new iPhone over two years. After twelve months of payments, the customer could trade their iPhone for a new model. Since the success of this program, Apple has continued to initiate other payment subscriptions for the company’s products.
Similar to the iPhone subscription service is Apple’s renowned AppleCare program. It’s a monthly subscription service just like the upcoming iPhone program and has been utilized by Apple since 2019. The accomplishments of these programs must have signaled to Apple that subscription plans were not only beneficial to the consumer but to the company’s customer retention.
There isn’t a lot known about Apple’s iPhone subscription service, but what’s certain is that payments won’t be divided by the device’s original price. The monthly cost is still undetermined, but surely it will be a more accessible option than buying a brand new iPhone. Many speculate that it’ll act similarly to the iPhone Update Program, where a purchased phone can be switched out for an updated one, but that’s still unknown. The program will be compatible with a customer’s Apple ID account, with options to upgrade to AppleCare bundles.
Many are skeptical about how the iPhone subscription service will work in general. Will people be able to swap out their iPhones after just a few months? Will you be able to terminate your subscription after switching out your first phone? There’s a lot of speculation on how Apple would be able to achieve a good deal from users constantly switching out their old iPhones for new ones. But, the details haven’t been disclosed yet, so there might be more substantial caveats to the subscription service consumers aren’t anticipating.
All and all, payment plans, like the iPhone subscription service, are generally favorable for the company’s revenue. Like auto-leasing programs, installment plans allow corporations to garner more money over time instead of making a one-time deal for a device’s cost. Though in the long run, companies like Apple could be profiting more than from a single purchase, a subscription plan can also aid buyers who don’t have thousands to spend on a new device immediately.
