Apple Cancels Plans for iPhone Subscription Service: What You Need to Know

Apple has reportedly shelved its plans for an iPhone hardware subscription service, which may be a relief in today’s economic climate, where the last thing anyone needs is another ongoing expense. According to Bloomberg, sources close to the matter reveal that Apple is no longer pursuing the iPhone subscription service, first rumored in 2022. The proposed service would have allowed customers to pay a regular monthly fee to essentially rent their iPhone, with the option to upgrade to the latest models as they were released.

This iPhone subscription service had reportedly been planned for launch the same year it was leaked, but was delayed by issues such as software problems and legal concerns. Now it seems the service won't arrive at all.

Based on the limited information available, Apple's proposed subscription service appeared to share some similarities with its existing iPhone Upgrade Program. Launched in 2015, the program lets customers commit to a two-year monthly payment plan for their iPhone, with current plans starting at $39.50 per month for the 128GB iPhone 16. After making 12 payments, customers become eligible to upgrade to the latest model, entering into a new loan agreement.

The iPhone Upgrade Program, however, allows customers to eventually own their device once they complete the payment plan. In contrast, Apple’s proposed service seemed more like a rental arrangement, where customers would likely have been required to return their iPhone if they canceled their subscription.

Apple also discontinued its Apple Pay Later service earlier this year, a possible indication that the company is reassessing its financial products. Initially announced in 2022, Apple Pay Later was a Buy Now Pay Later service that allowed customers to split payments into multiple smaller installments spread out over several weeks.