Apple is planning to sell iPhones and iPads as a monthly subscription service from next year. According to a Bloomberg report, the Tim Cook-led company is planning to roll out a subscription model for its hardware just like its apps.

Those who buy an iPhone or an iPad under this model will have to pay a monthly subscription fee and complete the payment of the device in 12 or 24 months. The report suggests that over time, Apple may even offer MacBook on a monthly subscription. However, the monthly subscription fee may not exactly be the price of the product divided by 12 or 24.

The move is being seen as a part of Apple’s strategy to eliminate middlemen and expand its installment-based payment offerings to its hardware.

Effectively, Apple has already taken the first step in this direction with its iPhone Upgrade Program. Under this, customers are offered interest-free loans with Citizens One, the National Lending Division for US-based Citizens Bank. Subsequently, they repay this loan over a 24-month plan. Additionally, the company also offers a small subset of Apple Card users to pay for its products over monthly installments without paying interest.

Meanwhile, the company has also been focussing on increasing its revenue through its subscription-based offerings like Apple Music, Apple TV Plus, Apple News Plus, Apple Fitness Plus, and Apple Arcade.

So far, Apple has not issued a statement on this. While the details of this proposed subscription model for Apple hardware remain murky, the one thing that’s clear is Apple’s ambitions with regard to its subscription model.

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(Edited by : Thomas Abraham)

First Published:Mar 25, 2022 11:51 AM IST