Apple Weighs Hardware Subscription For iPhones

Apple Weighs Hardware Subscription For iPhones
  • Apple Inc AAPL is working on a subscription service for the iPhone and other hardware products, Bloomberg reports.
  • Apple's move could make device ownership similar to paying a monthly app fee similar to Peloton Interactive Inc PTON.
  • A Bernstein analyst pitched the idea in 2016, saying that it could help Apple get to a $1 trillion market valuation. 
  •  Apple looked to make the process of buying an iPhone or iPad on par with the monthly subscription for iCloud storage or an Apple Music. 
  • Apple aims to let customers subscribe to hardware with the same Apple ID and App Store account they used to buy apps and subscribe to services. 
  • Apple also discussed allowing users to swap out their devices for new models.
  • The iPhone giant is considering attaching the hardware subscription program to its Apple One bundles and AppleCare technical support plans managed through a user's Apple account on their devices via App Store with online and offline checkout options, Bloomberg notes. 
  • The service would mark Apple's major push into automatically recurring sales, allowing users to subscribe to hardware for the first time instead of just digital services. 
  • According to Bloomberg, iPhone is Apple's most significant source of sales, raking over 50% of the company's revenue in 2021.
  • Price Action: AAPL shares traded lower by 0.02% at $174.03 in the premarket on the last check Friday.

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