It was recently rumored that Apple It is working on a subscription model for its products, where the company intends to sell iPhones and other products as a monthly subscription that allows users to pay a monthly fee to get the latest model of the iPhone every year.

Apple's service

Mark Gorman of Bloomberg said that Apple's new service will allow it to earn hundreds of dollars more than the average selling price of an iPhone with its subscription model, which will be over three years.

With Apple's new subscription service, users will not have to pay a large amount up front while upgrading their smartphones but instead will be paid on a monthly basis similar to iCloud and Apple Music.

How much will Apple make by selling an iPhone as a subscription?

According to Gorman, the company can make more than the average selling price of an iPhone. For example, if you decide to sell the iPhone 13 ($799), it will set a monthly fee of $35 over three years. This means that the device will sell for 1260 dollars.

As for the iPhone 13 Pro, which costs $ 999, Apple will charge it $ 45, and so Apple will earn $ 1620 for selling the iPhone over a period of three years (3 years is the average period for a user to upgrade).

And for the iPhone 13 Pro Max (its price is $ 1099), the user will pay $ 50 per month for three years, and Apple will achieve up to $ 1800, or $ 700 additional to the original price.

This means that the profit margin due to the new subscription service is more than 40%, and the company will benefit from the iPhone devices that will be returned by users by renewing and reselling them again. According to Gorman's report, the user who remains in Apple's subscription model for 10 Years, to earn $ 4000 through it, and this amount on the lowest category of iPhone devices.

Ultimately, the subscription model will benefit both users who want to upgrade and get a new iPhone every year, as well as Apple since people are expected to stay locked in the subscription service for longer and therefore more sales and more profits.

What do you think about buying an iPhone as a monthly subscription, tell us in the comments



Related articles