Apple Reportedly Abandons Plans for iPhone Subscription Service


Apple has allegedly chosen to halt its efforts for an **iPhone hardware subscription service**, a decision that may be welcomed by many amidst the current economic challenges, where taking on another regular payment may not be the best option.

As per a report from [Bloomberg](https://www.bloomberg.com/news/articles/2024-12-18/apple-halts-long-running-effort-to-build-iphone-hardware-subscription-service?srnd=phx-technology), insiders have indicated that Apple is no longer advancing the subscription initiative. First **speculated in 2022**, the service was intended as a means for consumers to pay a monthly charge to effectively rent an iPhone, with the bonus of upgrading to the latest version whenever a new one became available.

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The subscription service was apparently set to debut in the same year it was leaked, but setbacks caused by software complications and legal issues delayed its introduction. Now, it appears that the initiative has been postponed indefinitely.

From the scant information at hand, the suggested subscription service seemed to have some parallels with Apple’s current [iPhone Upgrade Program](https://mashable.com/archive/apple-yearly-upgrade-program). Introduced in 2015, the Upgrade Program permits customers to finance an iPhone through a two-year installment plan, with costs beginning at [$39.50 per month](https://www.apple.com/shop/iphone/iphone-upgrade-program) for the 128GB iPhone 16. After making 12 payments, users have the option to trade in their device and move up to the latest model, essentially initiating a new loan.

However, the vital distinction lies in ownership. The iPhone Upgrade Program allows customers to fully own their device upon completing the payment plan. In contrast, the now-canceled subscription service appeared to adopt a rental approach, where customers would likely need to return their iPhone if they opted out of their subscription.

This isn’t the sole financial service Apple has recently reassessed. Earlier this year, the company also [terminated its Apple Pay Later service](https://mashable.com/article/apple-pay-later-discontinued). Initially unveiled in 2022, Apple Pay Later was a Buy Now, Pay Later service that enabled customers to divide purchases into smaller payments over several weeks. The choice to discontinue both offerings indicates that Apple might be rethinking its strategy regarding financial products.

For now, it seems Apple is stepping back from launching new payment models and is instead concentrating on its current offerings.