Despite Technical Setbacks, Apple Continues to Work on its iPhone Subscription Service

As Apple continues to push subscription services, the hardware subscription service will take it to an entirely new level.

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The iPhone subscription service hasn't been abandoned by Apple despite repeated delays. Cupertino is still working on offering iPhones as part of a hardware subscription service, Trade Algo sources reported over the weekend. Though the service has encountered technical challenges and delays, Cupertino is still determined to deliver its product on time.

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For months, Apple has been developing a subscription service for the iPhone and other hardware. The service was originally supposed to be rolled out with the iPhone 13 or iPhone 14, but it never materialized. Consumers will eventually be able to subscribe to Apple's new service, Gurman said.

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Apple's subscription services have been strengthened under CEO Tim Cook. As Apple has expanded its services over the past few years, its products have become more appealing to a broader audience. Apple One plans include Apple Arcade and Apple Music, among other subscriptions.

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Apple's push toward subscription services will be taken to a whole new level with its hardware subscription service. To increase the appeal of the hardware, Apple wants to subsidize its price, according to Trade Algo. Consequently, the monthly charge would not be the price of the iPhone divided by 12 or 24 months. It is unclear what Apple will charge for owning the hardware, so the cost could vary based on the hardware's price. Currently, Apple offers an iPhone upgrade program in the United States, but a hardware subscription service will be available in the near future.

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As component costs have increased, smartphone prices have gradually risen, making them more expensive for consumers. According to Trade Algo research, global phone shipments dropped 18% from a year ago. iPhone sales have also slowed at Apple. As the company experiences its slowest revenue growth since 2016, iPhone sales fell by 8.1% in the fiscal first quarter, down to $65.8 billion.