The hardware subscription service for the iPhone may arrive before the end of 2022.

The iPhone hardware subscription service associated with the Apple One subscription service package is expected to arrive before the end of 2022.

• What is happening? You may not have to sell your kidney to get an iPhone 14, as Apple could launch an iPhone hardware subscription before the end of 2022.
• Why care? Because people who can’t afford regular upgrades will be able to rent the latest Apple smartphone and upgrade to a new one every year.
• What to do? Think about this idea for a moment. We used to think that people wanted to own digital goods like music, but subscriptions have proven us wrong. Thus, the subscription model may be ideal for computer hardware.

iPhone hardware subscription coming soon

It happens, your next iPhone might be a subscription. Instead of paying in full, you will rent a device and receive a new model every year.

Mark Gurman, in his Bloomberg Power On newsletter, claims that Apple is now preparing an iPhone hardware subscription program that will allow people to use their shiny new phones by paying a monthly subscription. The offer is believed to be related to Apple’s digital services suite, dubbed Apple One.

It should be launched by the end of 2022.

show me the math

Gurman made an interesting preliminary calculation, proving how such a proposal could significantly boost Apple’s iPhone revenue:

I’ll use the iPhone 13, Pro, and Pro Max starting prices of $799, $999, and $1,099, and I’ll take the monthly prices of $35, $45, and $50 as examples. I chose these tiers because they cut the cost of the old iPhone Upgrade Program by a few dollars.

Here’s how much Apple will earn in three years on a monthly subscription compared to the original price:

• iPhone 13 ($35/month): $1,260 for three years instead of $799.
• iPhone 13 Pro ($45/month): $1,620 instead of $999.
• iPhone 13 Pro Max ($50/month): $1,800 instead of $1,099

As you can see, an iPhone subscription would make it much easier for cash-strapped shoppers to get the latest Apple smartphones every year while earning Apple significantly more money per consumer.

Apple hardware subscription is inevitable

Research firm Loop Ventures was the first to offer subscriptions to Apple hardware. It’s hard to argue with how consumers are changing their shopping habits, especially when it comes to subscription services. They are everywhere. And Apple is no stranger to these things either.

However, to achieve this, Apple is believed to be building on elements it already offers. Analysts at Loup Ventures speculated back in 2020 that this could include an iPhone upgrade program, extended AppleCare coverage, and the company’s subscription package dubbed Apple One. Read: How to subscribe to Apple One

And while an iPhone hardware subscription is in development, there may be subscriptions for iPads, Macs, and other products in the future. Eventually, Apple can bundle these service offerings and hardware subscriptions into one mega-package covering most of your tech needs in exchange for a monthly fee.