Cover Image for Apple cancels its subscription service for iPhones that was never launched.
Thu Dec 19 2024

Apple cancels its subscription service for iPhones that was never launched.

It has been speculated that Apple could offer a subscription service for the iPhone in the future. However, it seems that those plans have been ruled out.

More than two years ago, it was leaked that Apple was planning to launch a hardware subscription service for the iPhone, allowing users to pay a monthly fee in exchange for getting a new device every year. This idea aligned with the growing trend across various sectors toward subscription models. However, recent reports indicate that this program has ultimately been canceled.

In December 2024, it was reported that the iPhone subscription, which never made it to market, has been definitively discontinued. The exact reasons behind this decision are not clear. Reviewing the aforementioned report, the proposed service would have allowed customers to pay monthly through the same Apple account they use to download apps and subscribe to services. This would enable them to trade in their iPhone for a new model each year.

This service, like the discontinued Apple Pay Later program, would have relied on an internal financial infrastructure and would be based on loans offered by the company. Earlier this year, Apple had begun testing the iPhone subscription service with some employees in its payments group, including teams working on App Store billing and the online store.

Currently, Apple has the iPhone Upgrade Program, which allows consumers to pay for a new iPhone over 24 months and offers the option to trade in the device for a newer model after making 12 payments. There is also the option of interest-free monthly payments when purchasing an iPhone with an Apple Card. The idea of the subscription service seemed to be a more streamlined option compared to existing payment methods, although it’s possible that Apple chose not to add more options to avoid complicating consumer choice. While more options are generally beneficial, the iPhone Upgrade Program already covers much of what was sought with the subscription.

Apple may reconsider its approach and consider launching its iPhone subscription service in the future, although it is not expected to occur alongside the release of the iPhone 17 next year.