Apple has reportedly shelved plans for a hardware subscription service that would have allowed users to get a new iPhone every year, according to Bloomberg’s Mark Gurman. Originally reported in 2022, the service was expected to launch that year but faced delays due to “software bugs and regulatory concerns,” Gurman explains. Now, the project appears to have been officially discontinued.
This decision comes on the heels of Apple shutting down its Apple Pay Later feature just a few months after its full rollout. Apple Pay Later, a buy-now-pay-later offering, was intended to give customers more flexibility in purchasing products but faced challenges in sustaining long-term operations.
Although the hardware subscription service will not move forward, Apple continues to offer several installment options to make iPhones more affordable over time. One such option is the iPhone Upgrade Program, which allows users to finance the cost of a new iPhone, including AppleCare Plus, over a 24-month period. Under this program, users can upgrade to a new iPhone after making the equivalent of 12 months of payments.
For customers who own an Apple Card, there’s another financing option available. Apple Card Monthly Installments can be used to spread the cost of a new iPhone or other Apple products over time, providing additional flexibility for those making purchases.
The cancellation of the hardware subscription service marks a shift in Apple’s approach to its business model. While the concept could have simplified annual upgrades for customers, the existing financing options provide alternative paths for those looking to spread out payments. Apple’s focus on refining its existing financial services offerings may indicate a strategic move to prioritize systems that are already integrated into its ecosystem.
By offering options like the iPhone Upgrade Program and Apple Card Monthly Installments, Apple aims to maintain customer accessibility while navigating the complexities of launching entirely new services. These programs ensure that users still have ways to access new hardware without needing to pay upfront costs in full, aligning with the growing demand for more flexible purchasing options in the tech industry.
Although the idea of a hardware subscription service was intriguing, Apple’s decision to discontinue the project underscores the challenges of launching innovative payment models in a heavily regulated environment. Moving forward, the company’s strategy seems focused on optimizing its existing products and services while exploring new opportunities that align with its operational capabilities.