We’ve heard some news about a rumored iPhone subscription service that lets you pay monthly for access to the latest Apple hardware like the iPhone 13. We were skeptical at first, but we’ve just heard that the price could be quite tempting.
This comes from Apple leak maestro Mark Gurman – in his Power On email newsletter he discusses his expected prices for the iPhone subscription service, depending on the iPhone model. The numbers he chose “undercut the old iPhone upgrade program’s prices by a few dollars,” suggesting Apple will do the same for its service.
Apple’s iPhone Upgrade Program is a service that allows you to spread the cost of a new iPhone over a period of time, rather than paying for it up front. You won’t save any money this way, but paying monthly can ease the financial burden for most people.
Gurman’s math focuses mostly on Apple’s finances and suggests that retaining viewers over the typical upgrade cycle (and selling subscribers’ old iPhones) would create even more environment for Apple. But he also reckons that Apple’s prices could be even lower than those he’s proposing.
“The company could make additional money by tying the program to its high-margin Apple One digital services bundles and AppleCare,” Gurman also suggests. This basically means you can also get things like Apple TV Plus, Arcade, Fitness Plus, News and a select bundle of other Apple subscription services as part of the bundle. However, these could drive the price up.
Given that Apple hasn’t even commented on plans for such a subscription service, we can’t take anything for granted, but Gurman is a good source on Apple’s goings-on and his report suggests the iPhone subscription service won’t be like that expensive as we expected.
Analysis: Apple is doubling down on its strategy
One of the main reasons people buy Apple hardware is the ecosystem: tablets, smartphones, wearables, computers, and other gadgets all play well together. For example, if you swap your iPhone for an Android device, your tablet for an Amazon Fire Slate, or your wearable for a Fitbit, you suddenly have a vulnerability. So not.
Apple is likely banking on this fact with its iPhone subscription service, especially if it opts for the “finance model” where you pay off your new iPhone over time like you would a car. Since you’re paying regularly, you’ll have more motives to stick with your iPhone and won’t suddenly decide to switch to Android when a flashy new Samsung phone comes out.
That’s doubly the case if Apple Care is included in the package – it would stop “breaking your phone” as a good excuse to get a new smartphone.
And it will be triple the case when Apple One is added – you won’t give up your subscription service if you’re halfway through Foundation when the time comes to renew.
Although Apple’s iPhone subscription service is just a rumor at this point, we’d be very surprised if it didn’t materialize, as that would be Apple’s next step in making sure its customers stick with iDevices — especially if Gurman’s prediction of it means ” big bank” for Apple, is correct.
