Say Goodbye to iPhone Upgrades: Hardware Subscription is coming!
Apple is actively working towards launching its much-anticipated hardware subscription program, which could become available to consumers as early as March or April. Despite facing engineering challenges, the company remains dedicated to bringing its services model to the hardware business by providing iPhones and other devices through a convenient monthly fee. The reports of Apple's efforts in early 2022 have generated a lot of excitement, and it seems that the wait may soon be over.
According to Mark Gurman's recent 'Power On' newsletter for Bloomberg, Apple is at the forefront of fintech innovation, with four projects currently underway. While two of these projects, Apple Pay Later and the Apple Card Savings Account, have already been publicly announced, the tech giant is also actively developing two additional exciting offerings: 'Apple Pay Monthly Installments' and the highly-anticipated iPhone subscription program. These developments highlight Apple's commitment to providing innovative financial solutions for its customers.
Apple's innovative hardware subscription program, originally intended to be launched in 2021 with the release of the iPhone 13, has faced some challenges in terms of engineering and technical issues. Despite these setbacks, the company remains committed to bringing this exciting offering to its customers, with plans to potentially launch it in 2022 with the release of the iPhone 14. Despite missed deadlines, Apple continues to work towards overcoming these challenges and delivering on its promise of convenient and accessible hardware solutions for its customers.
According to Gurman, both the iPhone subscription program and the 'Apple Pay Monthly Installments' project are ongoing initiatives at Apple. However, the company's push into the financial sector has proven to be more challenging than originally anticipated. This is due, in part, to the development of a comprehensive platform for its financial services known as 'Project Breakout.' This platform will handle key components of financial services, including checks, approvals, and transaction histories, which are typically handled by external partners. Despite the difficulties, Apple remains steadfast in its commitment to revolutionizing the financial industry and providing its customers with cutting-edge solutions.
Gurman also says that the 'Apple Pay Monthly Installments' and the iPhone hardware subscription program are distinct offerings, despite their similar concepts. It is important to note that the monthly charge for the iPhone hardware subscription program will not simply be the price of the device divided into 12 or 24 payments.
Instead, it will be a monthly fee that is yet to be determined, and will depend on the device chosen by the user. This fee will not necessarily result in the user eventually owning the device. If the program is still in development, as Gurman suggests, it could potentially be launched in March or April. This exciting offering provides a new and flexible way for consumers to access the latest in Apple technology.