Apple has abandoned its attempt to change the way users buy its devices, according to insiders. It previously planned to launch a monthly subscription service that would have given users new iPhones every year.
Apple has abandoned its attempt to change the way users buy its devices, according to insiders. It previously planned to launch a monthly subscription service that would have given users new iPhones every year.
According to Bloomberg, the team in that area has been disbanded and reassigned to other projects. The subscription work was overseen by the Apple Pay group, which also shut down its «buy now, pay later» program earlier this year. The service allowed customers to pay for purchases in multiple installments, but Apple is now directing consumers to third-party programs.
The iPhone subscription service was first announced in 2022, when it was set to officially launch. The launch was delayed until 2023, and then again, after numerous setbacks, including software bugs and regulatory issues. The company’s top executives sent the project for revision, but it was ultimately scrapped.
Apple hoped that the subscription would help it sell more iPhones and generate more recurring revenue. The gadget is Apple’s biggest source of revenue, accounting for just over half of its annual sales. The company also wanted to further tie users to the Apple ecosystem of products.
Instead of paying for an iPhone up front or signing up for an installment plan, customers would pay monthly using the same Apple account they use to download apps and subscribe to services. They would then be able to trade in their iPhone for a new model each year.
Like the closed Apple Pay Later program, this subscription would use internal financial infrastructure and be based on loans provided by the company itself. Earlier this year, Apple rolled out the iPhone subscription service as a test to employees in its Pay group. The teams working on App Store billing and the online store were also involved.
Recall that the Norwegian payment service Vipps became the first company in the world to launch a competing solution for Apple Pay on the iPhone after Apple agreed with European regulators to open its NFC technology to third parties.
