Whenever Apple debuts its latest iPhones, price is something that’s on everyone’s minds. Apple’s smartphones do not come cheap, which is why there were rumors that Apple was toying with the idea of an iPhone subscription program. Unfortunately, those plans have been scrapped.
No more subscription
Rumors of Apple’s plan for an iPhone subscription date back to 2022. This was part of Apple’s plan to ensure a steady stream of revenue from its customers. It is no secret that subscriptions offer a more sustainable and potentially lucrative way of generating revenue. It would also have the added bonus of ensuring customers stay locked in with the iPhone and Apple’s ecosystem.
In exchange for a subscription fee, customers would be able to upgrade to a new iPhone on an annual basis. This is great for those who want to consistently own the latest iPhones.
According to Bloomberg’s Mark Gurman, Apple might have killed off its iPhone subscription plan. There are a variety of factors that led to the shelving of the plans. For starters, there were regulatory concerns, plus there were also issues regarding software bugs. Apple has disbanded the team that was working on the iPhone subscription plan and has reassigned them to other projects.
Honestly speaking, it’s hard not to be surprised. Such a plan would probably only appeal to a small set of users. Not everyone sees the need to upgrade their phones every year. Not to mention, the cost of such a subscription would probably be high enough to be prohibitive.
Apple’s not alone
The idea of a hardware subscription plan isn’t new. Other companies, such as Google, have tried its hand at something similar. Some of you might be familiar with the Google Pixel Pass. The Pixel Pass is, conceptually, the same as what Apple had originally intended. Customers would pay a monthly subscription, and in turn, be granted perks and a cheaper way to upgrade to the latest Pixel smartphone.
Some of the perks Google offered include access to the Google Play Pass and Preferred Care. It was not a cheap subscription, though. The Pixel 6 costs $45 a month, and the Pixel 6 Pro costs $55 a month. However, some might argue that over a year, paying monthly would still be cheaper than buying the phone outright.
Regardless, Google probably came to the realization that it wasn’t a very good idea. The company eventually shut Pixel Pass down in 2023.
