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Apple’s Subscription Concept Gains Momentum Amid iPhone Pricing Challenges

Posted on 6 April 2025

Apple is reportedly considering reviving its hardware subscription service amidst rising international tariffs and pressure on its global supply chain. Initially proposed in 2022, this service would allow customers to pay a flat monthly fee for access to the latest iPhone and potentially other Apple devices, integrating hardware with Apple’s expanding suite of services. With production costs climbing and U.S. iPhone prices potentially rising, the idea is being reconsidered.

In his Power On newsletter, Mark Gurman from Bloomberg suggests that Apple aims to mitigate the impact of possible price increases from new import tariffs. Beyond traditional trade-in deals and installment plans, a subscription model is back on the agenda and may be more suitable now than in the past. The anticipated subscription plan would likely enhance the existing iPhone Upgrade Program.

Users would pay a monthly fee for hardware access, coupled with AppleCare+ protection and services like iCloud+ and Apple Music. At the end of the subscription, users could return the device, upgrade, or renew their plan. This model differs from conventional installment plans by emphasizing access over ownership, akin to how Apple One bundles services or how streaming platforms operate.

For Apple, this could strengthen user retention within its ecosystem and create a more predictable upgrade cycle. This concept initially seemed like a natural progression for Apple’s service offerings, but it didn’t launch for unspecified reasons. If Apple proceeds with this initiative, it may coincide with the introduction of new products, possibly including the iPhone 17 later this year.

Beyond iPhones, other devices such as iPads, Macs, and Apple Watches might also be part of the subscription bundle. While this wouldn’t be Apple’s first foray into altering customer behavior regarding hardware access, it could represent a significant shift in their approach. However, the feasibility of managing multiple subscriptions remains a concern for consumers.

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