Apple Cancels One of Its Best Ideas: Boost iPhone Sales

After years of rumors and efforts on Apple’s part, the company abandoned plans to launch hardware subscriptionwhich will allow users to purchase an iPhone or iPad by paying a certain monthly amount. As it turned out BloombergThe Cupertino firm would disband the team working on the model and move on to other projects, citing sources familiar with the matter.

Apple begins work on subscription service for iPhone in 2022with the idea of ​​offering users an alternative to a single payment or financing. The company’s goal was to increase recurring sales through iPhone purchases, the product category that generates the most revenue for the company. And, in turn, create an even more closed ecosystem.

This subscription It will work like any application or service.with the option, in addition, to change your iPhone (or iPad) every year and continue to pay the specified fee. Everything had to be managed internally, without intermediaries, including financing, which Apple offered its users in the form of monthly payments.

The aforementioned media outlets even report that Apple even tested the hardware subscription service with several internal teamsincluding those who handle billing at an Apple Store or brick-and-mortar store, as well as employees in the company’s payment department.

iPhone subscription service planned to launch in 2022

This subscription was planned to launch later that year, with the launch of the iPhone 14. In the end, the company decided to delay it until 2023. However, Apple was forced to delay the launch again due to various complications, including regulatory issues or software problems associated with the service.

Also – and this seems to be one of the reasons why Apple decided to cancel the project – Apple I had to compete and fight with complaints from carriers that are increasingly dependent on pay and subscription services to sell iPhones and retain customers.

Apple, let’s remember Apple Pay Later was also canceledannounced a service that allows Apple Pay users to split their purchases without interest or any other fees. As it turned out BloombergThe Consumer Financial Protection Bureau’s new – and strict – measures have significantly impacted the launch.

This agency, in particular, required for several months that any company offering payment and deferred payment services similar to banking must follow the same rules as credit card companiesor. And this is for Apple, whose department handles payments.

In any case, according to the above-mentioned media, the company may resume plans for iPhone subscriptions, but depending on third parties.