Shop E Store Apple no longer plans to create a “hardware subscription service” to make it as easy as possible to get a new iPhone every year. bloomberg reported that the goal was to “make owning an iPhone similar to subscribing to an app,” but the project “recently ended.”
The program was originally scheduled to begin at the end of 2022, but was postponed until 2023. The project reportedly stalled due to software issues and regulatory concerns.
It works like this: Instead of paying for an iPhone all at once or signing up for an installment plan, customers will be charged a monthly fee to the same Apple account they use to download apps and subscribe to services. That way, you can replace your iPhone with a new model every year.
Similar to the now-defunct Apple Pay Later program, hardware subscriptions use in-house financial infrastructure and are based on loans provided by the company itself. Earlier this year, Apple introduced an iPhone subscription service as a test for employees within its Pay group. We also joined teams working on App Store billing and online stores.
The move to end this iPhone subscription service project comes in the same year that Apple discontinued its Apple Pay Later program. With Apple Pay Later, customers can now finance purchases made with Apple Pay in four equal payments over six weeks with no fees or interest. In iOS 18, Apple added support for third-party financing to Apple Pay from partners like Affirm and Klarna.
Apple also offers an iPhone Upgrade Program backed by Citizens Bank that lets you purchase your iPhone in two-year installments with the option to upgrade after one year. You can also finance your iPhone purchase with monthly Apple Card installments.
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