Apple has reportedly stopped developing its much-anticipated iPhone hardware subscription service, according to Bloomberg’s Mark Gurman. Initially unveiled in early 2022, the program was designed to offer users an alternative way to access Apple’s flagship devices by paying a recurring fee, enabling subscribers to receive a new iPhone each year. Despite its promising concept, the project has faced multiple delays and is now officially discontinued.
The service, which was part of Apple’s growing subscription ecosystem, was delayed due to technical challenges, including software bugs, and regulatory concerns. Originally slated for launch the same year, it was announced, which was 2022, the project has since been deprioritised, with team resources reportedly redirected to other initiatives within the company.
This decision comes on the heels of Apple’s discontinuation of Apple Pay Later , a feature that allowed users to split payments into instalments. Despite its recent launch, Apple Pay Later was shuttered after a brief run, signalling a potential shift in Apple’s approach to financial services tied to its hardware ecosystem.
Alternative payment options remain
While the hardware subscription service will not move forward, Apple continues to offer various payment plans for customers seeking flexibility in purchasing its devices. The iPhone Upgrade Program allows users to finance a new iPhone and AppleCare+ coverage over 24 months. Subscribers can upgrade to a new iPhone after making payments equivalent to 12 months.
For those with an Apple Card, Apple Card Monthly Installments provide another way to spread out the cost of new Apple products, including iPhones, over time. These options remain part of Apple’s strategy to make its devices accessible while maintaining customer loyalty.
The iPhone hardware subscription service represented a bold move to solidify Apple’s dominance in the smartphone market. By tying customers to a recurring payment model, the company could have ensured a steady revenue stream and reinforced user retention. However, the challenges of launching such a service in an increasingly scrutinized regulatory landscape may have outweighed its potential benefits.
Apple’s focus now appears to lean more heavily on its suite of digital subscription services, such as Apple Music, iCloud, and Apple One bundles. These offerings have proven successful in building a recurring revenue model while complementing the company’s hardware business.
Despite this strategic shift, Apple’s existing payment plans provide consumers with flexible alternatives, ensuring that its devices remain within reach for a broad audience. However, the shelving of the hardware subscription service may leave some wondering what could have been for the Cupertino tech giant.
