Bloomberg: Apple scraps plans to offer iPhone hardware subscription service

Apple no longer plans to create a “hardware subscription service” to make it as easy as possible to get a new iPhone every year. Bloomberg Report The goal was to “make owning an iPhone feel like subscribing to an app,” but the project “recently ended.”

The program initially assumes To be launched by the end of 2022 But at that time Postponed to 2023 and beyond. The project reportedly suffered setbacks due to software issues and regulatory issues.

Here’s how it works: Instead of paying for an iPhone directly or signing up for an installment plan, customers are charged monthly to the Apple account they use to download apps and subscribe to services. This way they can replace their iPhones with new models every year.

Like the now-defunct Apple Pay Later program, hardware subscriptions will use in-house financial infrastructure and be based on loans provided by the company itself. Earlier this year, Apple deployed an iPhone subscription service as a test for its Pay division employees. The teams responsible for App Store billing and online stores are also involved.

In the same year, Apple shut down the iPhone subscription service. Terminating the Apple Pay Later program. Apple Pay Later allows customers to purchase anything using Apple Pay in four equal payments over six weeks, without any fees or interest. In iOS 18, Apple adds support for third-party financing to Apple Pay From partners like Affirm and Klarna.

Apple also offers an iPhone Upgrade Program, backed by Citizens Bank, which pays for iPhone purchases in two-year installments with the option to upgrade after one year. You can also purchase iPhone through monthly installments with Apple Card.

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