Apple Might Start Selling Its Hardware on a Subscription Basis
Expect bundle hardware upgrades with services like iCloud storage or Apple TV+.
This week, Apple announced that it might launch a subscription service model for its hardware, including its iPhones, in order to secure a reoccurring revenue stream. According to CNBC, the tech giant “would bundle hardware upgrades with services such as iCloud storage or Apple TV+ content and hardware for a single monthly fee.”
If Apple decides to proceed with this plan, this would potentially drive the stock price up without making any drastic changes to the prices of its products. Analyst Toni Sacconaghi said during a call, “We’re cognizant that there are lots of users out there that want a sort of a recurring payment like that and the receipt of new products on some sort of standard kind of basis, and we’re committed to make that easier to do than perhaps it is today.”
Reports state that a prime subscription is already in effect and that Apple has been testing out a similar scheme like the iPhone Upgrade Program, allowing customers to pay for their new iPhone in monthly installments. Stay tuned while we wait for more details to surface.