Apple’s subscription plans may let users own an iPhone without buying it. Here’s how

Amazon, Netflix, Hotstar, the list of your subscription seems to be getting longer with each passing day. Now, Apple might add one more to the ever-growing list of subscriptions, and that would most likely be your iPhone.

A recent report from Bloomberg said that the Cupertino-based tech giant is working on a new payment option that would let users subscribe to an iPhone rather than buy it. Although there is a lot more to be known about Apple's subscription plan. This could potentially offer a bigger incentive to exchange one's old smartphone rather than let it fade into a corner.

This, according to experts, could go long way in reducing e-waste on the planet. As more old smartphones are exchanged, Apple gets more components to recycle and reuse in new devices. Also, many feel that depending on the price, a subscription may end up cheaper than buying an iPhone going forward.

What We Know So Far:
If the report turns out to be true, the tech behemoth wants consumers to subscribe to its hardware products the same way they subscribe to Apple Music, iCloud, or Apple TV. Essentially users will be able to rent devices such as iPhones and iPads rather than purchasing them upfront.

Unlike the usual monthly instalments, the subscriptions will not be the price of the device split into 12 or 36 months. Apple is likely to charge a monthly fee depending on the device. The company has also announced that it will let users exchange old models for newer iPhones after they are launched. This is seen as a great business opportunity for the tech brand as it will encourage people to upgrade their smartphones more often.

The Price Factor
Bloomberg’s Mark Gurman in his recent newsletter has offered a breakdown of the pricing. The journalist noted that in a matter of three years, the brand may witness a jump in its revenue on subscriptions than on upfront purchases of iPhones.

Gurman said that Apple could make more money than the average selling price of an iPhone - USD 1,260 (around Rs 95,100) by charging USD 50 (about Rs 2600) a month for the iPhone 13 which costs USD 799 (around Rs 60,300). According to the report, the price is an estimation for a period of over three years.

The tech enthusiast went on to analyse the money Apple could create if the iPhone 13 Pro had a USD 45 (around Rs 3,400) monthly subscription. The brand is likely to earn USD 1,620 (around Rs 1,22,200) compared to the USD 999(around 75,400) price of the iPhone 13 Pro. Similarly, Apple could rake in up to USD 1,800 (around Rs 1,35,800) on the iPhone 13 Pro Max in three years for a USD 50 (around Rs 3,800) monthly payment. The iPhone 13 Pro Max starts at USD 1,099 (about Rs 82,900).

If the subscription model is introduced, Apple fans who wish to upgrade their smartphones every year will benefit greatly from it. There are no confirmations from Apple about its plans for the launch of the subscription model. However, reports hint at a launch by end of 2022 or early 2023.