Apple is developing a hardware subscription service for iPhones

According to sources familiar with the subject, Apple Inc. is working on a subscription service for the iPhone and other hardware devices, a move that could make gadget ownership akin to paying a monthly app charge.

The service would be Apple’s largest push yet towards automatically repeating sales, enabling consumers to subscribe to hardware rather than simply digital services for the first time. However, the idea is still in the works, according to the persons, who requested not to be named since the initiative has not yet been publicized.

Apple shares rose to a session high after Bloomberg reported the news on Thursday, and the stock finished up 2.3 percent at $174.07. Despite the fact that the stock is still down 2% for the year, Apple has now notched eight consecutive days of gains, its longest stretch since November.

Adopting hardware subscriptions, similar to an auto-leasing program, would be a significant business move for a corporation that has always sold products at full cost, occasionally via installments or with carrier subsidies. It has the potential to increase Apple’s income and make it simpler for customers to justify spending hundreds of dollars on new gadgets.

Already, the iPhone is Apple’s most profitable product, garnering about $192 billion in revenue last year – more than half of the company’s total income.

Apple’s Cupertino, California-based representative refused to comment on the company’s intentions.

The goal is to make purchasing an iPhone or iPad as simple as paying for iCloud storage or an Apple Music subscription on a monthly basis. Apple intends to allow users to subscribe to hardware using the same Apple ID and App Store account they now use to purchase applications and subscribe to services.

The program would vary from an installment plan in that the monthly rate would not represent the cost of the equipment divided over 12 or 24 months. Rather, it would be a yet-to-be-determined monthly cost based on the device selected by the user.

When new hardware is released, the business has proposed enabling program members to change out their gadgets for new ones. It has a tradition of releasing new versions of its key gadgets, like as the iPhone, iPad, and Apple Watch, once a year.

Apple has been working on the subscription program for several months, but it was recently put on hold in order to launch a “buy now, pay later” service sooner. Nonetheless, the subscription service is still slated to begin around the end of 2022, although it might be postponed until 2023 or canceled, according to the sources.

According to Bloomberg, the business has been working on a “buy now, pay later” solution for all Apple Pay purchases since last year.

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