Apple's iPhone subscription may still arrive in 2022

AppleInsider · September 11, 2022 2:09PM

A monthly Apple iPhone subscription bundle is still on the way, with a package combining hardware and services like Apple One still rumored to be coming soon.

The hardware subscription, which would allow customers to acquire iPhones and other items from Apple for a monthly fee, has floated around in rumors for a while, but has yet to become a reality. While Apple had an opportunity to introduce such a service during its iPhone 14 event, it may still make an appearance in the coming weeks, a report claims.

Apple is supposedly thought to be "actively testing" the service, according to Mark Gurman's "Power On" newsletter for Bloomberg on Sunday. While being tested, Gurman says he still expects it "to launch either later this year or next year."

The proposed subscription wasn't announced or mentioned during the iPhone event in order to "reduce launch day complexity," since it would be an "entirely new way to buy an iPhone."

Given the expectation of an October event for iPad and Mac launches, there could be a high chance Apple could use that presentation as a venue for a subscription launch.

Apple already offers a number of direct ways customers can get the latest flagships, including the iPhone Upgrade Program and installment programs, like Apple Card. However, the subscription would differ as customers wouldn't just pay a portion of the hardware cost, but also for a suite of services on top.

For example, Gurman says Apple One bundles could add in hardware as part of the monthly cost, enabling customers to get core Apple services straight away. It's also plausible for Apple to roll in AppleCare+ as part of the same all-encompassing package.

Gurman's predictions of a late 2022 or early 2023 launch of the subscription echo similar statements he made in March. However, rumors of an all-in-one subscription are actually a few years old, with analysts believing it to be an inevitability for Apple.

It is also thought that a hardware subscription could be beneficial to investors, since it would shift the narrative away from seasonal one-time transactions to one of reoccurring sales.

Read on AppleInsider

entropys · September 11, 2022 7:57PM

You will own nothing, and be happy.

M68000 · September 11, 2022 9:54PM

entropys said:

You will own nothing, and be happy.

Lol.. I sense sarcasm. I would hope that traditional purchasing without all the extras will remain. If not, that could be troubling enough to consider android option.

entropys · September 11, 2022 10:01PM

Sarcasm yes, but the corporate weenies aren’ t doing this for love, but margins.

It is the old “how do you boil a frog in a pot without it jumping out” trick.

I do worry in the future everything, housing, cars, communications etc will become subscription based (well your house you rent will be owned by a corporation or an old money family) and one of the downsides would be the ease of unpersonning of anyone inclined to be a dissident. Everything and Everyone will be owned by the establishment, as it was in feudal days, like Russia under the tsars.

chasm · September 11, 2022 11:01PM

I’m not sure how this will be much different a model from the current iPhone Upgrade program: under that, you pay monthly and have the option to upgrade to the latest phone every year. It is possible to refuse the upgrade and continue paying until you actually own it, but I doubt more than a small percentage of people in that program use that option, so in essence you’re paying forever for the right to have the latest iPhone.

Since nobody seems to have a problem with the existing implementation, just expand it to cover the iDevice or Mac you want — oh wait, there’s already a buy-now-pay-later program for those items as well (as long as you order directly from Apple). IIRC, this includes AppleCare+ and is offered with zero interest or fees, so … for many this would be a more affordable way to get the machine they’ve always wanted, so … can’t quite figure out what else this program “in testing” would offer beyond this … <shrug>

Madbum · September 12, 2022 1:11AM

entropys said:

You will own nothing, and be happy.

No need to own old tech

JFC_PA · September 12, 2022 1:46AM

For a cost savings over the individual parts I could see it as an added choice. Not one I’d choose beyond iPhone and AppleCare but options are good.

M68000 · September 12, 2022 3:56AM

Madbum said:

entropys said:

You will own nothing, and be happy.

No need to own old tech

Except perhaps to save some money and not buy every new version that comes along?

laytech · September 12, 2022 4:38AM

Subscriptions tie people in. It's just another form of debt but without any asset. The perception being that you subscribe and then get all the latest models. People may not value or look after those devices, the concern is the consumerism will be just turnover of product.

Subscriptions make sense for software but hardware is like leases on cars, always costs your more and has no sense of attachment. Not sure its a good thing to be honest. If you can't afford to buy it, then get it on a plan with Apple or your phone provider.

StrangeDays · September 12, 2022 5:00AM

M68000 said:

entropys said:

You will own nothing, and be happy.

Lol.. I sense sarcasm. I would hope that traditional purchasing without all the extras will remain. If not, that could be troubling enough to consider android option.

This is nonsense, you’re not going to have to talk about switching to android knockoffs because in no multiverse is Apple going to stop selling devices.

StrangeDays · September 12, 2022 5:07AM

laytech said:

Subscriptions tie people in. It's just another form of debt but without any asset. The perception being that you subscribe and then get all the latest models. People may not value or look after those devices, the concern is the consumerism will be just turnover of product.

Subscriptions make sense for software but hardware is like leases on cars, always costs your more and has no sense of attachment. Not sure its a good thing to be honest. If you can't afford to buy it, then get it on a plan with Apple or your phone provider.

The reason to rent or lease is simple — lower monthly cost. I lease a car because it’s cheaper than a new car note to the degree that I find advantageous, and I don’t want to keep a car for a long period. Further, believe it or not but you still have an asset when leasing — at the end of my last 3-year lease I sold the car to another dealer for over $10,000 cash (not a trade-in, I flat out sold it). You can do this when the street value of the leased car is higher than what you owe to the bank for the remainder of the loan (yup, there still is a set loan amount from the financing bank for a leased car).

entropys · September 12, 2022 8:18AM

You are still paying for the cost of Other Peoples’ Money whenever you borrow, lease or subscribe. It might be visible or not.

In this case for Apple there is the lock in advantage. It can raise the outright purchase of a phone if more people subscribe at a monthly rate. It also smoothes out income flow for the company.

While people can still buy outright at current prices it is not so bad. If a lot of people subscribe the cost of the subscription (eg the interest Apple could get for the money, or other sources of value add) will be built into the price for even the outright buyers.

fred1 · September 12, 2022 10:39AM

entropys said:

You will own nothing, and be happy.

So true, and the way everything is going: books, music, movies, . . . What’s next? Clothing? Furniture? . . .

If only it made us a little less materialistic.

DAalseth · September 12, 2022 1:36PM

laytech said:

Subscriptions tie people in. It's just another form of debt but without any asset. The perception being that you subscribe and then get all the latest models. People may not value or look after those devices, the concern is the consumerism will be just turnover of product.

Subscriptions make sense for software but hardware is like leases on cars, always costs your more and has no sense of attachment. Not sure its a good thing to be honest. If you can't afford to buy it, then get it on a plan with Apple or your phone provider.

StrangeDays said:

laytech said:

Subscriptions tie people in. It's just another form of debt but without any asset. The perception being that you subscribe and then get all the latest models. People may not value or look after those devices, the concern is the consumerism will be just turnover of product.

Subscriptions make sense for software but hardware is like leases on cars, always costs your more and has no sense of attachment. Not sure its a good thing to be honest. If you can't afford to buy it, then get it on a plan with Apple or your phone provider.

The reason to rent or lease is simple — lower monthly cost. I lease a car because it’s cheaper than a new car note to the degree that I find advantageous, and I don’t want to keep a car for a long period. Further, believe it or not but you still have an asset when leasing — at the end of my last 3-year lease I sold the car to another dealer for over $10,000 cash (not a trade-in, I flat out sold it). You can do this when the street value of the leased car is higher than what you owe to the bank for the remainder of the loan (yup, there still is a set loan amount from the financing bank for a leased car).

The comparison to a car lease is quite apt. It all depends on how long you keep the thing. If you upgrade every couple of years then, yes you save money. But if you keep it longer, then you don’t. I have never leased a car and I never will. I bought my Prius in 2005, and it’s still running just fine. It’s 17 years old and was paid off 15 years ago. From then on I’ve just gotten further and further ahead. When will I replace it? I don’t know, when it doesn’t meet my needs any longer I guess. I have an iPhone 11. I bought it outright and will keep it at least another two or three years, possibly longer. Leasing would have just cost me more. Same with my 2016 iMac. I’ll likely replace it within a year, or two, but leasing it would have made no sense.

I have devices, a car, lots of things. They do what I need and I keep them until they don’t. Only then is there a reason to replace them.

ITGUYINSD · September 12, 2022 2:08PM

M68000 said:

Madbum said:

entropys said:

You will own nothing, and be happy.

No need to own old tech

Except perhaps to save some money and not buy every new version that comes along?

Trading in an old iPhone and getting $1000 from a carrier is saving money. Getting that $1000 a nickel at a time (it feels) keeps you from upgrading every new version.
I don't see how a subscription will be a value. You stop paying, and you have nothing. It's only saving grace would be if it's cheaper than carrier payments AND includes the most popular Apple services (Apple Music, ATV+ and iCloud storage).

danox · September 12, 2022 4:27PM

laytech said:

Subscriptions tie people in. It's just another form of debt but without any asset. The perception being that you subscribe and then get all the latest models. People may not value or look after those devices, the concern is the consumerism will be just turnover of product.

Subscriptions make sense for software but hardware is like leases on cars, always costs your more and has no sense of attachment. Not sure its a good thing to be honest. If you can't afford to buy it, then get it on a plan with Apple or your phone provider.

Subscription goes perfectly with short term thinking (Human) and I have to have it now, most of the Apple devices are very affordable if you are willing to budget, save and invest.

danox · September 12, 2022 4:43PM

entropys said:

You will own nothing, and be happy.

And most will do so but they won’t be happy…

maciekskontakt · September 12, 2022 8:08PM

It is called lease - not acquisition. Stop reinventing meaning of well defined financial terms. (Happens that I come from large financial IT).

For what Apple is doing, I do not think I am rejoining them after leaving in 2019. Just called Verizon who is provider and they do support OnePlus 10 newest phones (as long as unlocked) that come with all that iPhone got rid off recently plus Hasselblad high quality camera for far less. Time to renew older Android with... another Android.

maciekskontakt · September 12, 2022 8:12PM

StrangeDays said:

M68000 said:

entropys said:

You will own nothing, and be happy.

Lol.. I sense sarcasm. I would hope that traditional purchasing without all the extras will remain. If not, that could be troubling enough to consider android option.

This is nonsense, you’re not going to have to talk about switching to android knockoffs because in no multiverse is Apple going to stop selling devices.

You would think they would not. We also thought like that about automotive industry and now try to buy 90% cars on the market. See what happens when you reach warranty expiration if they are still supported and anybody could repair them. You would be surprised. Currently the only value car that is worth to won and reparable by other shops in 90% than manufacturer is Mazda. Try to repair the of cars from different brands and see what happens. They promote lease - not ownership. It is now worth even to get old cars and renovate them and treat as historic or kits (except in California where madness does not have bottom)

maciekskontakt · September 12, 2022 8:16PM

laytech said:

Subscriptions tie people in. It's just another form of debt but without any asset. The perception being that you subscribe and then get all the latest models. People may not value or look after those devices, the concern is the consumerism will be just turnover of product.

Subscriptions make sense for software but hardware is like leases on cars, always costs your more and has no sense of attachment. Not sure its a good thing to be honest. If you can't afford to buy it, then get it on a plan with Apple or your phone provider.

Well all car manufacturers promote lease. You have no clue about repair and maintenance. It is simply impossible anymore. You are linked to manufacturer for period of support. No more cars that ownership makes much sense except Mazda (90% can be repaired outside Mazda if needed and 10 year later)

maciekskontakt · September 12, 2022 8:29PM

I can see Apple bumping prices to $2500 for phone and promoting lease. "It is cheaper solution". Right. Time to move on. Others do not do it.

Apple's iPhone subscription may still arrive in 2022

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