Apple ceases work on iPhone hardware subscription service

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Apple has reportedly discontinued plans for a dedicated iPhone hardware subscription service, opting instead to focus on existing programs that fulfill similar objectives.

According to Bloomberg, the company axed the idea and disbanded the entire team behind the project. 

Rumors of such a subscription service emerged years ago and gained traction in 2022. The proposed model resembled a monthly charge akin to App Store payments.

Apple had been internally testing the program, which would have involved loans directly provided by the company. 

Initial expectations suggested a public rollout by the end of 2022, but recent reports indicate the project has been shelved.

Instead, Apple will steer customers toward third-party loan options and continue leveraging its current offerings.

Apple already has a better workaround for you 

The existing iPhone Upgrade Program effectively achieves many of the goals of the rumored subscription service.

This program, financed by Citizens Bank NA rather than Apple itself, allows customers to pay a monthly fee to receive a new iPhone every year. 

Subscribers must make 12 consecutive payments before becoming eligible for an upgrade, which may occasionally delay access to the latest iPhone due to timing and availability constraints.

The process of enrolling in the iPhone Upgrade Program is similar to the standard iPhone purchasing process. Users must initially select a carrier, though they can switch carriers freely afterward. 

The program automatically includes AppleCare+, offering device protection as part of the monthly cost. For an additional fee, users can opt to enhance this coverage with the AppleCare+ Theft and Loss option.

Apple also offers installment payment options via the Apple Card and carrier-specific monthly payment plans.

These alternatives provide flexible ways to acquire iPhones without requiring a standalone subscription service.

By maintaining these programs, Apple has effectively achieved the goals of its rumored subscription initiative, giving users the flexibility of predictable monthly payments and frequent device upgrades without launching an entirely new system.

What do you think about the iPhone subscription service? Would you like Apple to launch it, or do you prefer buying an iPhone on contract from a carrier or at the full price outright? We would love to hear your thoughts in the comments below, or via our Twitter or Facebook.