Apple was going to sell iPhone by subscription, but changed its mind

Apple has canceled plans to launch a device subscription service that would allow users to get a new iPhone every year. The service was originally planned to launch at the end of 2022, but the project ran into difficulties due to problems related to software and difficulties from regulatory authorities.

Image source: Onur Binay / Unsplash

According to Bloomberg, the idea was to make purchasing a new iPhone similar to subscribing to an app. Instead of paying for a device at one time or taking out an installment plan, customers were expected to pay a monthly fee tied to their Apple account, which they use to download apps and subscribe to services. This would allow each year, with the release of the next model, to replace the old iPhone with a new one.

As part of testing, iPhone subscriptions were available to employees of Apple Pay’s financial division, as well as specialists working with the App Store and the company’s online store. Like Apple Pay Later, a now-closed installment payment service for goods and services, device subscriptions would use Apple’s own financial infrastructure and be based on loans provided by the company itself. As for Apple Pay Later, the service allowed users to split purchases made through Apple Pay into four equal payments over six weeks without interest or additional fees. However, iOS 18 instead introduced support for financing purchases through partners such as Affirm and Klarna.

It is worth saying that despite the closure of the iPhone subscription purchase program, Apple continues to offer other installment plans. For example, through the iPhone Upgrade Program, which is supported by Citizens Bank and allows you to split the cost of the device over two years with the option of purchasing a new smartphone after a year. A payment option is also available using Apple Card Monthly Installments, where the amount is divided into monthly payments.