Apple may have cancelled its long-rumored iPhone hardware subscription service

AppleInsider

Apple has reportedly stopped work on a discrete iPhone hardware subscription service, but the goals of the project have been largely accomplished with the iPhone Upgrade Program.

Carrying around the new iPhone 16 Pro for the past week or so

Rumors about an iPhone hardware subscription service solidified in 2022, after a few years of speculation. Reportedly, the prototype of the program applied a monthly charge to customers not dissimilar to App Store payments. Loans are said to be provided by Apple itself.

Apple was said to be actively testing the program internally two years ago. In September of 2022, it was thought that the project would deploy to users before the end of that year.

The report about the cancellation of the program on Wednesday afternoon also says that Apple will direct customers to third-party loan offerings instead.

And then, there's also installments through Apple Card, and the iPhone Upgrade Program. Both existing monthly payment programs that Apple facilitates are still running and aren't expected to stop.

Carriers also have their own monthly payment programs.

iPhone Upgrade Program may already fit the bill for what Apple wanted to do

The iPhone Upgrade Program operates in a similar fashion to what's been rumored for an iPhone subscription service. Although, instead of being underwritten by Apple, the iPhone Upgrade Program is funded by Citizens Bank NA.

Under this program, qualifying members get to pay a monthly fee and receive not only that year's new iPhone model, but then their choice of new iPhone every year.

That means, very literally a new device every 12 months. While you don't have to upgrade, you also cannot do so before you have made 12 monthly payments.

Consequently in some years, and depending on when you join the program, you may not be eligible to upgrade to the new phone on launch day, just given shipment and availability timing.

Really what you're doing first is going through the same steps you would to buy a new iPhone.

The first exception to that may be at the carrier stage. If you select the option marked or activate with any carrier later, then you won't get the choice of the iPhone Upgrade Program later in the process.

It's not that you're locked to a carrier, though. Even though it seems so because you must pick one at this point, once you're on the program, you can swap carriers at any time.

If you join the iPhone Upgrade Program and get an iPhone, you also get AppleCare+. It is not possible to skip it. However, you can add to it with the more comprehensive AppleCare+ Theft and Loss option, which is an additional fee that gets added to your monthly installments.



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tzterri

I've been in the iPhone upgrade program now for some years and really like it so good to hear that that's not being canceled

johnwhite1001

Great news if true.  Hardware subscription a bad idea.

daalseth

I’m not one to upgrade my phone every year. I might though, be interested in getting my iPhone on a payment plan over 6-12 months, at a very low/no interest deal. But once I have the device I keep it until I really have a very good reason to upgrade. 

edited December 2024

sirdir

Now if such a thing existed  anywhere but in the US…

charlesn

I've been on the iPhone Upgrade Program since it launched. Love it. I'm somewhat of a tech nerd (I'm posting HERE, right?) and I think of my phone as "the computer I use most by far on a daily basis." So it's a bit of a splurge on myself that I appreciate every day. The tweaks from year-to-year keep it interesting. I also dumped all of my Nikon pro DSLR gear several years ago and switched to iPhone photography exclusively, so the Pro camera upgrades mean more to me than the average user. For those who aren't as compelled to upgrade annually, the other great thing about the program is that you don't have to--keep up monthly payments for a second year, and the phone is yours. Sell it, keep using it, whatever. (And remember: the Upgrade program is 0% interest for two years.) Of course, carriers have all kinds of "iPhone on us" programs (though usually less generous than in the past) but they usually lock you into a carrier contract for 2-3 years. I'm not about that at all. I jumped from Verizon proper to its new low cost carrier, Visible, this year and cut my monthly mobile bill by $60/month (!), with a rate locked in for 2 years and absolutely ZERO compromise in the fast 5G service I was getting from Verizon here in NYC. I couldn't have done that if I was locked into a Verizon contract.

By the way, if you have Verizon, you should 100% be looking to switch to Visible if avaiable in your area. The Visible+ plan offers everything my Verizon Unlimited plan offered, at one-third the price. Been using it for six months now and notice zero difference from Verizon service, even as I've traveled around the country, plus Europe and Asia. What you don't get are "perks" like discounts on streaming services that you get with Verizon, but you can easily find those elsewhere. 

hammeroftruth

johnwhite1001 said:

Great news if true.  Hardware subscription a bad idea.

That’s what the iPhone upgrade program is. A lease for your iPhone. If you upgrade every year then you’re only paying for what you use, if you hold on to your iPhone for years, then use something else like carrier financing, iPhone payments or Apple Card. 

charlesn

hammeroftruth said:

That’s what the iPhone upgrade program is. A lease for your iPhone. 

Yes and no. It's a lease if you upgrade annually. The monthly payments never stop. But if you keep the phone and continue payments for a second year (which are at 0% interest), then you own the phone after 24 months. Sell it, trade it in, hold onto it longer with no more payments--it's up to you. That's the nice part of the Upgrade program--if you don't find an upgrade compelling in a given year, just keep what you have for another 12 months and you own it.