This week, Bloomberg reported that Apple is looking at the potential of releasing another subscription service to complement iCloud, Apple Music, Apple TV+, and Fitness+.
You’d pay a membership fee for iPhones and iPads instead of receiving digital services and online programs from video-conferenced fitness experts (and maybe other Apple hardware).
The report’s specifics are sparse. For access to hardware, the alleged service would demand a monthly subscription. The advantage, as with leasing, is that someone may receive an iPhone 13 Pro Max (worth $1,099 / £1,049 / AU$1,849) for no money down in exchange for agreeing to pay a monthly recurring cost for as long as they possess the phone.
While this may be a convenient method for people to get their hands on a powerful new iPhone or iPad (as well as a MacBook or Mac Studio), it could also be a clear victory for Apple.
A larger company
The corporation already has a thriving subscription business that generates billions of dollars every quarter and has become a significant element of its total revenue picture (iPhone sales still generate the most revenue).
Apple currently offers a monthly payment plan for iPhones dubbed The iPhone Upgrade Plan, which guarantees you always have the newest and greatest iPhone for $35.33 (and higher) each month.
You won’t be able to acquire a new phone until you’ve paid for 12 months. Although a subscription program may provide greater freedom, it is also possible that you will never buy an iPhone.
Is this a win-win situation?
Some analysts see this possible service as a win-win situation for Apple and customers. “This is a more convenient way to offer hardware and services, and [Apple] could open it up to include other Apple hardware devices in a Chinese menu format,” said Tim Bajarin, Chief Analyst and Chairman of Creative Strategies. “It would also tie their customers into a long-range services model that is more predictable,” he added.
A subscription approach like this might help alleviate the stress that people feel when their brand-new, high-priced iPhones gradually degrade into last year’s sluggish and clearly less-valuable handsets. With a subscription model, Apple may solve the problem of fast depreciation.
All of these services are already available on Apple devices. Would you pay for an Apple One Premium Plus (we’re speculating on a name) membership that includes a leased iPhone, iPad, and (perhaps) AirPods, as well as an Apple TV box and a MacBook or Mac? And how much would you be willing to pay each month for such a service.
To read our blog on “Apple and WiLAN settled an agreement in their battle over LTE patents,” click here.