Apple has decided against moving forward with a “hardware subscription service” aimed at simplifying the process of obtaining a new iPhone annually. According to Bloomberg, the intention was “to make iPhone ownership akin to subscribing to an app,” but the initiative was “recently shelved.”
This program was initially slated for launch at the end of 2022 but experienced delays extending into 2023 and beyond. Reportedly, the project faced issues arising from software malfunctions and regulatory challenges.
The service was designed to operate as follows: Instead of purchasing an iPhone outright or enrolling in an installment plan, users would pay a monthly fee charged to their Apple account utilized for app downloads and service subscriptions. This system would allow customers to exchange their iPhone for a new model every year.
Similar to the now-defunct Apple Pay Later initiative, this hardware subscription would leverage Apple’s internal financial infrastructure and be supported by loans issued by the company itself. Earlier this year, Apple tested the iPhone subscription service with employees from its Pay group, while teams focused on App Store billing and the online store also contributed.
The cancellation of this iPhone subscription service follows closely the discontinuation of Apple’s Apple Pay Later program this year. Apple Pay Later enabled customers to finance any purchase made via Apple Pay in four equal payments over six weeks, free of fees or interest. In iOS 18, Apple has introduced options for third-party financing in Apple Pay through partners such as Affirm and Klarna.
Additionally, Apple provides the iPhone Upgrade Program, which is supported by Citizens Bank, allowing consumers to pay for their iPhones in installments over two years, with an upgrade option available after one year. Financing options are also offered through Apple Card Monthly Installments.
My top accessory picks for the iPhone 16:
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