Smartphones as a service? Apple could be working on iPhone subscription program

Cloud storage, music, and apps have all mostly migrated from the buy-once model to a subscription-based offering. However, it sounds like Apple could be the latest company to switch business models.

Bloomberg reports that Apple is working on a subscription service for the iPhone and other consumer hardware products, citing sources familiar with the topic. So what does this actually mean?

The outlet likens this mooted iPhone subscription service to an “auto-leasing program.” It draws further parallels between this new service and subscription services like Apple Music and iCloud storage.

Paying for a phone that isn’t yours?

Apple already offers the iPhone upgrade program, allowing users to pay for a device across 12 or 24 months and allowing users to upgrade each year. However, Bloomberg claims that the new subscription plan wouldn’t spread the device cost over 12 or 24 months but would be a yet-to-be-determined monthly fee instead.

It’s unclear whether users would be able to keep their iPhones after a set amount of payments, but the comparisons to Apple Music and iCloud suggest this might not be the case.

For what it’s worth, the iPhone upgrade program allows users to keep their current phone after 24 payments have been made. Google’s Pixel Pass program also allows customers to keep their Pixel device after two years of payments.

It wouldn’t be the first time we’ve seen what is effectively a leasing program, as rental initiatives are available from some carriers and retailers. Nevertheless, this could be the first time we see a leasing or subscription-based program from a major manufacturer.

It all sounds like a rather worrying trend, as your most personal tech wouldn’t actually be yours if it turns out you can’t keep the phone. However, it could potentially make sense for people who need a phone for a short period of time (e.g. a business trip or your previous device broke) or for those who want to try a device first.