Apple no longer plans to create a “hardware subscription service” to make it as easy as possible to get a new iPhone each year. Bloomberg reports that the goal was to “make owning an iPhone like subscribing to an app,” but the project was “recently scrapped.”
The program was originally set to launch in late 2022, but has been delayed to 2023 and beyond. The project reportedly failed due to software issues and regulatory concerns.
It would work like this: Instead of paying for an iPhone outright or signing up for an installment plan, customers would get a monthly fee billed to the same Apple account they use to download apps and subscribe to services. They would then be able to upgrade their iPhone to a new model every year.
Like the now-defunct Apple Pay Later program, the hardware subscription would use its own financial infrastructure and be based on credit provided by the company itself. Apple rolled out the iPhone subscription service as a test for employees in its Pay group earlier this year. The teams working on App Store billing and the online store were also involved.
The decision to end the iPhone subscription service project came the same year that Apple discontinued its Apple Pay Later program. Apple Pay Later lets customers finance any purchase made with Apple Pay in four equal payments over six weeks, with no fees or interest. In iOS 18, Apple added support for third-party financing to Apple Pay from partners like Affirm and Klarna.
Apple also offers the iPhone Upgrade Program, which is backed by Citizens Bank and splits iPhone purchases into installments over two years with the option to upgrade after a year. You can also finance iPhone purchases with Apple Card monthly installments.
My favorite iPhone 16 accessories:
- Anker Power Bank with Built-in USB-C Cable
- Charge your iPhone, Apple Watch, and AirPods at Once
- Wireless CarPlay in Any Car
- Anker MagSafe Power Bank
