Here's how much it could cost to rent the iPhone with the rumored subscription program
Some days back, it was reported that Apple was considering a monthly hardware subscription program that would let you lease devices like the iPhone. We first heard murmurs about this in late 2019 when CNBC reported that investors wanted the Cupertino giant to sell the iPhone on a subscription basis. Bloomberg's Mark Gurman now has more to share about the program.
rumored iPhone subscription service would be more of a rental program and you will never actually own the device.Apple already has an iPhone Upgrade program that spreads out the cost of a phone over 24 months. Once you are done with the payments, the phone becomes yours. The
The iPhone Upgrade program starts at $35.33 per month, and Gurman thinks the rental fee will be a little lower. Based on that, here is how much it could cost to get one of the latest and most popular iPhone models through the subscription service:
- iPhone 13: $35 per month
- iPhone 13 Pro: $45 per month
- iPhone 13 Pro Max: $50 per month
The program may also include other services such as the Apple One services subscription program and AppleCare technical support plans.
Apple's motive behind the program is apparently - and unsurprisingly - earning more revenue. The 2019 report had said that such a program would enable the company to generate recurring revenue. A typical Apple user upgrades their iPhone every three years, meaning they spend around $825 every three years on an Apple phone.
In contrast, someone using the iPhone as a service could pay $1,260 over three years ($35 x 26). When a user upgrades to a new model, Apple could sell the used device on the secondary market and earn even more money.
The advantage for the consumers would be that they won't have to pay a big amount upfront and will be able to easily upgrade to the latest models every year.
We can expect Apple to formally announce the program by the end of 2022 or next year.