14 DAY TRIAL // Apple is believed to be working on a hardware subscription service that would allow customers to pay a monthly subscription, just like they do for Netflix, for instance, and therefore be able to use the latest iPhone and iPad models.
While it’s believed the new platform could launch later this year, many wonder if such a strategy could actually work, as paying a subscription to use a device may not be everybody’s cup of tea.
A report from Consumer Intelligence Research Partners indicates that Apple does have the user base that would make such a product really successful.
“CIRP analyzed consumer behavior for subscription-related services, including phone purchase financing and trade-in rates, and use of Apple services and apps. Based on this analysis, CIRP finds iPhone owners use these services frequently enough that Apple has a large base of users that could adopt an iPhone subscription service. Among these services, almost half already finance their iPhone purchase, two-thirds use paid iCloud storage, and almost half subscribe to the Apple Music streaming service,” the market research firm explained.
Apple obviously tight-lipped on this rumor
Indeed, a hardware subscription platform could make it easier for Apple customers to get the latest and greatest, and this could be considered the top incentive to join the service.
The research shows that almost 1 in 2 iPhone customers already finance the device and pay a monthly rate for it, so with this special program, Apple would be the one offering such benefits as a first-party.
“Based on current consumer behavior, iPhone users are primed to adopt a subscription service that provides an iPhone bundled with useful apps,” said Josh Lowitz, CIRP Partner and Co-Founder.
“Almost half iPhone owners already finance their iPhone purchase, paying monthly for a new phone. And about one-third trade-in their old phone when they buy a new one. So, a significant portion of the user base is accustomed to never owning a phone, instead basically leasing it. Importantly, iPhone users also have grown accustomed to getting a new model every two or at most three years. Apple can easily match these patterns with a program that routinely sends a new phone in exchange for the old one.”