Apple iPhone Subscription Model Likely On Cards: Is It Beneficial?


These days, there are many subscription services such as Netflix and Amazon Prime to mention a few. Likewise, it is reported that Apple is working on a similar model to boost the sale of its iPhones in the future.

Apple iPhone Subscription Model Likely On Cards: Is It Beneficial?


As per a report by CNBC, Apple CEO Tim Cook has hinted that they will bring a subscription-based model to replace the traditional sale model. This service is alleged to be dubbed Apple Prime. The report notes that this was hinted at the recent Q4 earnings call. Basically, Apple wants to make it easy for users to pay for iPhones on a monthly basis.

Apple iPhone Subscription Model

Going by the report, Apple Prime, the iPhone subscription model will bring all services such as the newly launched Apple TV+, Apple Music, Apple Pay, Apple Arcade, and iPhone for a monthly fee. As of now, the company provides an upgrade program that lets customers upgrade to a new iPhone each year on paying for 12 months. This service launched in 2015 is available only in the U.S.

If the Apple Prime service is launched, then it will be an alternative to the iPhone Upgrade Program and offer the same benefit with additional services. And, users can make payments as per their own schedule. If users pay the full cost for the iPhone within two years, then there will be no need to pay the interest. Also, there will be a benefit of a 3% discount.

Why Apple Subscription Model Will Work Out?

The idea of the iPhone subscription is something that you might have not even had in your dreams. But this is a growing reality and you need to come to terms with it. For Apple, the iPhone has been its biggest source of revenue. Initially, people bought a new iPhone once in two years and now it has increased to three to four years.


This change in trend is because consumers are looking for incremental changes almost every year as a reason to upgrade to a new model. If there is no compelling reason for them to upgrade to a new model, then they simply don't do it. And, this is not a good thing for Apple.

Previously, the iPhone 6 boosted the sales of Apple as there was a demand for larger iPhones. Later, the iPhone X was also perceived with a great interest in its new design language, but its pricing deterred the sales. Now, the iPhone 11 is selling well, but Apple cannot depend on the occasional bestsellers. It needs reliable and recurring income from the sales of iPhones, which is why the company seems to have come up with this plan.

With the upcoming iPhone subscription model, both Apple and consumers will benefit. The company will get regular revenue as it launches new models and the buyers will get all Apple-related services and the iPhone of their choice with a specific monthly cost.

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