Apple has decided against launching a “hardware subscription service” that would have simplified the process of obtaining a new iPhone annually. According to Bloomberg, the intention was “to make owning an iPhone akin to subscribing to an app,” but the initiative has been “recently discontinued.”
This program was initially slated for a late 2022 debut but faced delays extending into 2023 and beyond. The project reportedly encountered challenges due to software issues and regulatory hurdles.
The concept was straightforward: rather than purchasing an iPhone outright or entering into an installment agreement, customers would incur a monthly charge linked to the same Apple account used for app downloads and service subscriptions. This would allow them to exchange their iPhone for a new model each year.
Similar to the discontinued Apple Pay Later program, the hardware subscription would rely on an internal financial structure, using loans issued by Apple. Earlier this year, Apple began testing the iPhone subscription service with employees in its Pay division, also involving teams focused on App Store billing and online retail.
The cancellation of the iPhone subscription service comes in the same year that Apple pulled the plug on its Apple Pay Later initiative. This program enabled customers to finance any purchase made using Apple Pay into four equal payments over six weeks, without incurring fees or interest. With the release of iOS 18, Apple introduced support for third-party financing through partners like Affirm and Klarna via Apple Pay.
Additionally, Apple provides the iPhone Upgrade Program, which is supported by Citizens Bank and divides iPhone costs into payments over a two-year period, allowing for an upgrade after one year. iPhone purchases can also be financed through Apple Card Monthly Installments.
Check out my favorite iPhone 16 accessories:
FTC: We utilize auto affiliate links that generate income. Learn more.
