The price is always an obstacle for many when thinking about upgrading and buying a new iPhone, but it seems that this is about to change and everyone will be able to buy the latest iPhone with ease, thanks to Apple, which intends to launch a new service soon, which It will allow it to sell iPhones via subscriptions, according to press reports.


iPhone rental

Gorman (Bloomberg Writer) reports that Apple may soon introduce a subscription device service, where customers will essentially rent their devices instead of buying them immediately and expects the subscription plan to start by the end of this year or early next.

According to Gorman, the idea is to allow users to rent iPhones in small payments spread over the year rather than paying the amount once, similar to a monthly subscription to iCloud and Apple's music streaming service.


What is the benefit to Apple?

For the world's largest company by market capitalization, moving to a device leasing model will bring Apple all kinds of benefits as the subscription service will attract a lot of users to upgrade and buy the latest Apple devices first hand instead of holding on to their old devices for years and that means billions of dollars for the company.

Also, Apple will have a firm foothold in the repair and resale market and will unfortunately eliminate the market of sellers who repair, refurbish and sell old Apple devices and, most importantly, add other services in bundles when leasing their devices and this will boost the growth of the service sector (Apple Music - Apple TV - Fitness - iCloud and others) have and get a larger market share than competitors.


The difference between the upgrade program and subscription service

The upgrade program was first introduced in 2015 and allows customers to buy an iPhone and pay in 24 monthly installments and after making 12 payments, customers can either continue to make payments until they own the entire device or return the device in exchange for the latest model. The 24 month payback period starts over and so on...

In contrast, the subscription service differs from the upgrade program in that the monthly cost will not be the price of the device divided into 12 or 24 months. Instead, it will be a monthly amount that has not yet been determined but will depend on the type of device the user chooses.


Apple's plan is not new

The subscription model Apple is considering isn't new. Google launched a similar plan last year that allows users to get a new Pixel phone every two years plus 200GB of cloud storage, maintenance service, and access to the company's video and music streaming offerings and the company's App Store. And all this for $45 or $55, depending on the type of phone.

Finally, if Apple offers the subscription service for devices at a reasonable price and under appropriate conditions, this step will certainly be a win-win for both parties, the company and users.

What do you think of the plan to sell the iPhone as a subscription service, tell us in the comments

Source:

bloomberg

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