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Apple reportedly cancels plans for iPhone subscription service

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Apple has apparently shelved its plans for an iPhone hardware subscription service. It's just as well — the last thing anyone needs in this economy is yet another ongoing expense.

Bloomberg reports that Apple is no longer working on its iPhone subscription service, according to sources close to the matter. First rumoured in 2022, the tech giant's hardware subscription would have given customers the option to pay a regular monthly fee to essentially rent their iPhone. They'd also be able to upgrade to the latest iPhone as new models 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.

Judging from the scant details that have emerged, Apple's proposed subscription service seemed to have borne some similarities to its iPhone Upgrade Program. Introduced in 2015, this program allows customers to enter a two-year monthly payment plan for their iPhone, with current plans starting at $39.50 per month for the 128GB iPhone 16. Once they've made 12 payments, they're eligible to upgrade their phone when the next model arrives, entering a new loan.

However, the iPhone Upgrade Program enables customers to ultimately own their device outright if they complete the payment plan. In contrast, Apple's previously planned service sounded more akin to renting a device, with customers presumably required to return their iPhone if they cancelled 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.




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