Apple Hardware Subscription Could Make Your iPhone A Monthly Payment

Apple wants to rent iPhones, Macs, and everything in between, it seems. And win some permanent customers, while at it. As per Bloomberg, the company is working on a hardware subscription service that will allow eager folks to subscribe to a hardware product, just the way they would subscribe to a service like Netflix or Xbox Game Pass. "The service would be Apple's biggest push yet into automatically recurring sales, allowing users to subscribe to hardware for the first time — rather than just digital services," the report adds.

Shedding more light on the plans, Bloomberg's Mark Gurman tweeted that Apple's hardware subscription service will launch next year. Moreover, it could be offered as a bundled package with the Apple One subscription that currently covers only software products such as Apple Music, Apple Fitness+, and Apple Arcade among a total of six offerings. Additionally, AppleCare could also tag along as part of the hardware subscription service, likely for covering scenarios such as accidental damage to the loaner devices. Apple already offers an iPhone upgrade plan, but that model banks on customers willing to make a long-term commitment.

Rent an iPhone. Maybe, you'll like it very much!

The plans could spur a seismic change in the consumer electronics industry and could help Apple further expand the reach of its product ecosystem. However, the concept is still in the development phase, which means it could be nixed down the road. From a business perspective, Apple could win a ton of new customers by offering them a taste of its polished hardware and the tight-knit service ecosystem built around it. All that, at a nominal fee, and without any of the complexities involved with purchasing a phone attached to a long-term installment format.

The move also makes sense from a buyer's perspective. A key deterrent for many potential customers happens to be the high asking price of Apple hardware, and the fear that investing a sizeable chunk of their money to buy an iPhone or a Mac would mean they're stuck with it for a long time, whether they like it or not. With a subscription plan, a lot of those apprehensions can be addressed. Moreover, a hardware subscription strategy will also attract a lot of enthusiasts from the Android and Windows sides of the ecosystem, who can get a taste of what Apple has to offer without seriously hurting their wallet.