iPhone Hardware 'Subscription' Service Project Reportedly Scrapped by Apple

Apple's iPhone subscription service was reportedly expected to launch in 2022, but faced multiple delays.

Written by David Delima | Updated: 19 December 2024 12:25 IST

iPhone Hardware 'Subscription' Service Project Reportedly Scrapped by Apple

iPhone 16 Pro and iPhone 16 were launched earlier this year

Highlights

Apple's iPhone subscription project reportedly began in 2022
It was expected to replace Apple's iPhone Upgrade Program
Apple may team up with other partners to revive the project in the future

Apple has scrapped a project to set up a new hardware 'subscription' service for the iPhone, according to a report. The purported iPhone hardware subscription programme was in development for at least two years, and was designed to allow customers to keep upgrading to a new model every year, while ensuring a steady stream of revenue for the Cupertino company. The firm's Apple Pay division was reportedly in charge of the project, alongside a 'pay later' programme that was also scrapped.

iPhone Subscription Service Was in Development Since 2022

Bloomberg's Mark Gurman reports that Apple has stopped efforts aimed at launching an iPhone hardware subscription service — a project aimed at offering a new iPhone model to customers who paid an annual subscription fee to the company to get access to the latest hardware from the company.

The project faced multiple delays since it was started two years ago — it was expected to be introduced by the end of 2022, but multiple setbacks resulted in the service being delayed by more than a year, according to the publication.

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The company was also reportedly concerned that the project would face scrutiny from the Consumer Financial Protection Bureau (CFPB) that previously stated companies offering 'pay later' services would have to adhere to regulations that applied to firms like Visa and Mastercard.

Apple already offers an 'iPhone Upgrade Program' in the US that allows users to pay for a new iPhone over two years, and the now-scrapped iPhone subscription project was expected to replace this programme, as per the report.

The iPhone is already the largest contributor to Apple's revenue, making up just over half of all of its sales in the previous financial year, according to company reports. A subscription programme could have ensured a steady flow of revenue for the iPhone maker, while keeping customers from switching to other smartphone brands.

This is the second payment-related project from Apple to be shuttered in 2024. In June, Apple announced that it was winding down Pay Later, which was created in partnership with Goldman Sachs and Mastercard to rival US fintech Affirm. Pay Later was introduced a year ago and allowed customers to make a purchase worth up to $1,000 (roughly Rs. 85,100) and pay it off over four instalments. Apple could still bring back its iPhone hardware subscription project by working with a new partner, according to the report.

iPhone 16

KEY SPECS
NEWS

Display 6.10-inch

Processor Apple A18

Front Camera 12-megapixel

Rear Camera 48-megapixel + 12-megapixel

RAM 8GB

Storage 128GB, 256GB, 512GB

OS iOS 18

Resolution 1179x2556 pixels

More Apple mobiles Apple mobiles price in India

iPhone 16 Plus

REVIEW
KEY SPECS
NEWS

Design
Display
Software
Performance
Battery Life
Camera
Value for Money

Good
Stunning display
Solid build quality and lovely colour options
Battery life is bonkers on this one
Excellent for gaming and performance (in general)
Improved cameras

Bad
Still offers a 60Hz refresh rate and misses out on AOD (always-on display)
No fast charging
Comes with USB 2
No Apple Intelligence features out of the box

Read detailed Apple iPhone 16 Plus review

Display 6.70-inch

Processor Apple A18

Front Camera 12-megapixel

Rear Camera 48-megapixel + 12-megapixel

RAM 8GB

Storage 128GB, 256GB, 512GB

OS iOS 18

Resolution 1290x2796 pixels

More Apple mobiles Apple mobiles price in India

iPhone 16 Pro

KEY SPECS
NEWS

Display 6.30-inch

Processor Apple A18 Pro

Front Camera 12-megapixel

Rear Camera 48-megapixel + 12-megapixel + 48-megapixel

RAM 8GB

Storage 128GB, 256GB, 512GB, 1TB

OS iOS 18

Resolution 1206x2622 pixels

More Apple mobiles Apple mobiles price in India

iPhone 16 Pro Max

REVIEW
KEY SPECS
NEWS

Design
Display
Software
Performance
Battery Life
Camera
Value for Money

Good
Massive screen size
Brilliant display
Performance beast
Camera Control is a boon
Fantastic battery life

Bad
Big phone for one-hand use
Expensive
No Apple Intelligence at launch
Slow-wired charging support

Read detailed Apple iPhone 16 Pro Max review

Display 6.90-inch

Processor Apple A18 Pro

Front Camera 12-megapixel

Rear Camera 48-megapixel + 12-megapixel + 48-megapixel

RAM 8GB

Storage 256GB, 512GB, 1TB

OS iOS 18

Resolution 1320x2868 pixels

More Apple mobiles Apple mobiles price in India

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Further reading: iPhone, Apple

David Delima

Email David Delima

As a writer on technology with Gadgets 360, David Delima is interested in open-source technology, cybersecurity, consumer privacy, and loves to read and write about how the Internet works. David can be contacted via email at DavidD@ndtv.com, on Twitter at @DxDavey, and Mastodon at mstdn.social/@delima. More