A week ago, Mark Gurman of Bloomberg did what he was popular with. He revealed exclusive news. This time around, Apple is working on a hardware subscription service for the iPhone. If you’re reading this for the first time, please tell us how interesting this idea is to you, as this news has received a lot of attention.
Now, how is it different from buying an iPhone in installments or carrier subsidies if you have the following questions? How will I benefit from this as a customer, and how will Apple benefit from this subscription model and more? Read together to find the answers to all these questions.
Contents
- 1 What is Apple’s Hardware Subscription Service?
- 2 How is it different from installments and iPhones offered by mobile carriers?
- 3 Does a hardware subscription kill the iPhone upgrade program?
- 4 How does Apple benefit from the hardware subscription model?
- 5 Is the iPhone hardware subscription model suitable for users?
What is Apple’s Hardware Subscription Service?
Apple’s hardware subscription service for iPhone makes it easy to use and own an iPhone from an economic point of view. In the rumored service model, Apple leases the iPhone to users for a subscription fee that is still unknown.
The overall idea is to treat the hardware product as a software service such as Apple Music, Apple TV Plus, Apple Fitness Plus.
Apple’s services accounted for 18.7% of Apple’s market share. It may not seem like a lot, but it plays an important role because it ranks higher than other hardware products sold by Apple, such as the iPad and Apple Watch.
Can you believe that Sony is at a loss for selling the PS5? At the beginning of that cycle, it sold the PS5 at a loss, and most companies do the same. Companies do this because they profit from selling games in the form of subscriptions or CDs.
When will Apple’s hardware subscription service start? – Well, Apple hasn’t announced a subscription service at the time of writing this article.
How is it different from installments and iPhones offered by mobile carriers?
When purchasing an iPhone with EMI (monthly payment), you only have to pay a fixed amount with a prepayment (down payment). After that, a fixed amount will be deducted from your payment method each month and you will own the device at the end of your tenure.
If you buy your iPhone through your mobile carrier, you will have to pay the mobile carrier monthly, including the cost of your iPhone. If you purchased your iPhone from AT & T, your device will be locked to AT & T for about 2 years. You can now unlock your device through a specific process and use it with other carriers. When you pay the amount for your iPhone, it’s yours.
You can now unlock your device through a specific process and use it with other carriers.
Currently, Apple’s hardware subscription service does not allow you to own an iPhone at all. It always belongs to Apple. However, because it’s a monthly subscription system, you can upgrade to a new iPhone every year or under conditions set by Apple.
Does a hardware subscription kill the iPhone upgrade program?
Apple’s iPhone upgrade program started in 2015. As a member of the iPhone Upgrade Program, you can upgrade to a new iPhone after paying 12 times. If you choose not to upgrade to a new iPhone after 12 months, you will own the device after 24 payments.
Given that Apple has killed its products and services, Apple could kill the iPhone upgrade program and push the subscription model. How does this model help Apple as a company? Let’s check.
How does Apple benefit from the hardware subscription model?
Katie Hooverty, chief analyst at Morgan Stanley, says the average Apple user pays only $ 1 for the hardware and services they use every day. According to her, the average user will be willing to pay more to use Apple’s hardware and services. If you have access to more Apple devices and services, please let us know if you can spend a little more.
Apple may offer several subscription models at different prices. The basic subscription may include an older iPhone (iPhone 12), but the most costly subscription is the flagship iPhone (iPhone 13 Pro / Max) bundled with other Apple subscriptions. ) May be included.
Is the iPhone hardware subscription model suitable for users?
Subscribing to the iPhone certainly sounds attractive. All services and iPhone are linked to one Apple ID, which makes it easier to manage these services.
What’s more, it’s easy to upgrade to a new iPhone. You don’t have to pay the full amount to buy an iPhone that will be replaced with a successor within a year. Also, if you’re a subscriber, Apple prioritizes the issues you face because you’re a repeater.
But are there any drawbacks to this iPhone subscription model? Think of this model as renting a house. You keep paying repeatedly, but you never own a house. The same is true here. Also, as more people upgrade their iPhones repeatedly, more e-waste will be generated. However, the devices will be returned to Apple so you can recycle them.
Please note that Apple has not announced anything about the hardware subscription model mentioned above. This is all based on Mark Gurman’s report, and given his credibility, don’t be surprised if this happens.
Well, how it pays the fare will be known over time! Still, please tell us your thoughts on this model in the comments below.
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