Apple Inc. is moving toward the launch of its hardware subscription program, and it is likely to become available approximately by March 2023. The program is close to launching despite delays arising from engineering issues.
Apple is close to offering an affordable option to consumers unwilling to shell out large sums of money for Apple devices, with a subscription service to cut down the hardware cost.
Despite repeated internal delays, Apple continues to work on its plan to provide Apple phones and other devices in a subscription service. Initially, the plan was to be launched with the iPhone 13 and 14 variants, which did not work out.
Tim Cook, Apple’s CEO, has been pushing to bolster the company’s subscription services, aiming to widen the appeal of the company’s portfolio. Apple’s One plan already includes Apple Music and Apple Arcade.
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Subscription To Subsidize Hardware Costs
The monthly subscription will not simply divide the cost of devices into 12 or 24-month installments. Instead, the cost is likely to vary depending on the overall hardware costs of varying devices. The delays have been largely attributed to the development of the company’s Breakout Project platform.Â
The platform’s role is expected to be critical in terms of transaction checks, histories, and approvals, which were otherwise handled by external partners. The iPhone hardware subscription and Pay Monthly Installments are separate offerings.
The objective of the service is to push into revenue streams with recurring incomes, which will tie in Apple’s lucrative hardware business to its services domain. Also, users will not be required to buy Apple Care services through Apple Cards. Further, subscribers will be able to exchange their devices following 12 payments or six months, depending on the product, which will also improve the appeal for Apple devices through 2023 and beyond.
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