In the face of potential price hikes due to import tariffs, Apple is reportedly revisiting the idea of a subscription-style model to offer its hardware products. This approach, initially explored a couple of years ago, may now be more feasible given the current economic climate.
What Would an Apple Hardware Subscription Plan Look Like?
The envisioned subscription plan would build upon the existing iPhone Upgrade Program. Customers would pay a monthly fee that covers not only the device itself but also includes AppleCare+ coverage and access to services like iCloud+ and Apple Music. At the end of the subscription period, users could choose to return the device, upgrade to a new model, or renew their subscription.
With the possibility of iPhone prices surpassing $999, a hardware subscription model could help Apple mitigate the impact of higher costs on consumers.
Likelihood of Implementation
While Apple has not officially confirmed these plans, back in 2023, the company laid the groundwork for a hardware-as-a-service model through trademarks and infrastructure. Given the current economic pressures, this could be the right time for Apple to introduce such a subscription offering, potentially starting with the release of the rumored iPhone 17 later this year. The success of this model could extend to other Apple products like iPads, Macs, and Apple Watches in the future.
