Apple Has Reportedly Cancelled Its Hardware Subscription Service Where Customers Could Own An iPhone By Paying A Monthly Fee; Regulatory Concerns Was One Issue

In 2022, it was reported that Apple was working on a hardware subscription service that involved paying a monthly fee to become the proud owner of an iPhone. On paper, this business model would have made sense for potentially millions of customers who did not possess the means to pay $799 onwards to own the latest and greatest model. While the possibilities to profit from this subscription would be near-endless, the latest report claims that Apple has dropped its plan to introduce this service. The latest information states that there were various reasons for this cancellation, so let us discuss them in more detail.

Other problems, such as software bugs, delayed the hardware subscription service,e and with its cancellation, the teams working on Apple’s next launch have now been re-assigned to other projects

Even before the latest Bloomberg report, Apple was previously said to have been facing numerous problems with launching its hardware subscription service, which led to multiple delays. Additional updates mention that Apple would have directed customers to third-party loan offerings instead of handling all the risk itself. There were various reasons why the company was forced to cancel the service, with one of them related to regulatory concerns, coupled with software bugs.

It is unconfirmed when Apple ceased work on the subscription, but it is likely that the team working on it were disbanded a few months ago and re-assigned to other projects. As mentioned above, what the Cupertino firm wanted to introduced to the masses could have been game-changing and would likely have attractived millions of potential customers under its umbrella.

After all, having the opportunity to pay an unlocked iPhone’s retail price in 12 or 24 months meant that customers would not be pressured to part ways with their hard-earned cash in a single purchase. Shortly after the iPhone, Apple could have introduced this hardware subscription service for other products, but it appears that the company had other intentions.

News Source: Bloomberg