Apple is working on an iPhone subscription service, could launch by the end of the year: Mark Gurman

Apple’s hardware subscription service has been in the works for some time and was made public in March of this year after being exposed in a Bloomberg article. A few months later, the same source now claims that Apple’s hardware subscription service is currently in testing and will be announced later this year or early next year. The subscription service will essentially let buyers subscribe to Apple hardware instead of buying it outright. Buyers pay a monthly fee and can upgrade to a new iPhone model when available.

his Power On Newsletter, Mark Gurman explains that the service is expected to work very differently once it goes live compared to Apple’s current iPhone upgrade program, which basically lets buyers split the cost of an iPhone over 12-24 months. The new hardware subscription service will be quite different in that its subscribers will pay a monthly fee (like Apple Music subscriptions) to use the device and then upgrade to a new one; As new models become available.

According to Gurman, Apple is still testing its new hardware subscription service and working out how it will integrate with its Apple One bundle. The source also claimed that its new service will launch later this year or next year, and that Apple didn’t announce the service at its iPhone 14 launch to “reduce launch day complications,” as it would be a completely different way to make purchases. An iPhone.

It remains to be seen how many Apple devices will be part of this subscription service and whether it will extend to Apple’s Mac ecosystem as well. Also critical is the price and fine print that divides the line between owning devices or using them outright. Gurman also noted in its newsletter that subscription fees will also depend on “which device the user chooses.”

According to earlier reports, this new hardware subscription service is expected to benefit Apple as it is expected to earn more money than the average selling price of the iPhone. This should work well for Apple as it releases new versions of important devices year after year. Consumers benefit from a new and updated device at a lower cost and don’t have to bear the entire cost of buying a new device at once.