Apple has reportedly abandoned plans to launch an iPhone subscription service that would have allowed users to upgrade to a new model annually by paying a fixed monthly amount.
Bloomberg, which first reported on the concept years ago, said Apple initially aimed to develop a service enabling customers to pay a monthly fee for the annual upgrade. However, the project has reportedly been cancelled due to regulatory concerns, software challenges and other obstacles, with team members now reassigned to other divisions.
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The proposed subscription model would have simplified payments, allowing customers to make monthly installments instead of paying for devices upfront. It was also designed to encourage more frequent upgrades at a time when users are holding onto their phones longer.
A representative for Apple did not respond to a request for comment.
The change also highlights Apple’s evolving payment strategies. The subscription initiative was overseen by the Apple Pay group, which ended its “buy now, pay later” program in June. While that service allowed users to make installment payments directly through Apple, similar options are now available via third-party providers.
Currently, Apple’s iPhone Upgrade Program lets customers spread payments over one or two years, differing from the subscription model’s proposed fixed monthly fee.
