There is not a lot of detail about the program, but it is said that it will launch on the iPhone before expanding to other devices. That being said, Apple already offers IPhone update program This allows you to spread the price of the new iPhone with AppleCare + in two years. It is basically a loan check and a monthly payment to the bank, with the option to upgrade to a new model (and loan) after 12 payments.
If you are constantly improving, this is a great program. Of course, you can get more of a one-year-old iPhone by selling it privately or to a third-party reseller, but there is nothing easier than upgrading to the program: Order your new iPhone, place your old iPhone in the box provided, and you’re done. No extra cost or hassle.
The subscription service will be different, it may have an attractive name. (For the purpose of this article I’m going to call it the iPhone +, but this is only a guess.) Step Bloomberg Report, The service will be credit free and will continue to charge like Apple TV +. If you subscribe, you will pay a monthly fee until you decide to disconnect Apple Music or TV +. Mark Gurman speculates, otherwise it means you’re paying more than the phone, but Apple can create security that informs you when you pay, trade or reduce your bill automatically.
But that does not mean you will not pay more for each device. Currently, Apple’s iPhone upgrade plan starts at $ 39.50 for the iPhone 13 and $ 54.08 for the iPhone 13 Pro Max. If you keep your iPhone for two years, it will be $ 948 and $ 1,297.92 respectively. Otherwise, you’ll trade and start with a new phone. So you can trade up to your iPhone and pay up to $ 474 before getting a new one. Apple wants to change that with this new service.
For the iPhone + subscription service to work, it must have some value. Apple already sells tens of thousands of iPhones each year without the need for a subscription service, so it is imperative to provide something with the iPhone. Take it Google Pixel Pass. For $ 55 a month, you get Pixel 6 Pro with custom maintenance, 200GB of Google One storage, YouTube Premium and YouTube Music Premium, Google Play Pass and “Google Store Offers”. This is a two year subscription that saves about $ 12 when you buy each part separately. You can not upgrade until you pay the full price of the phone.
Michael Simon / IDG
The iPhone + subscription service may be similar. Such as Apple One Bundles, Which will encourage you to join and stay. For example, Apple One Premier costs $ 30 a month for Apple Music Family, Apple TV +, Apple Arcade, Apple News, Apple Fitness + and 2TB of iCloud storage. Separately, they cost $ 50 a month, so the savings are significant. Apple could do something similar with its iPhone subscription plan, compiling one or more of its services and upgrading iCloud storage at a fixed fee. You can get Apple TV + or additional iCloud storage for free.
The question is with improvements. Will Apple allow upgrade after 12 payments like the current plan? Or will it lock you in to pay the full price of the iPhone? My guess is the latter. Apple’s subscription service is all about lock-in, and subscription service is a way to ensure that people pay as long as they use the iPhone. Think of it as Apple Music — none of the songs in your library belong to you, but until you pay the monthly fee Feels You do.
The interesting part will be with other products. Apple does not offer upgrade plans for any other product, so a Mac or Apple Watch subscription will appeal to those who do not want to spend or have no money on a new expensive device. The key feature of any subscription service is that you always have to keep paying, and extending the iPhone + program to other devices is a great way to do just that. The price of a Mac can be several thousand dollars more than the iPhone, and the possibility of paying very low fees for a long time is a way for Apple to get more people on high-end Macs.
Apple already offers a good lock-in with its current products and services. But with a new hardware subscription service, we can pay for our products permanently and not actually own any of them.