Apple Inc. is working on a subscription based service for the iPhone and other devices which could allow ownership of Apple product by paying a monthly fee, according to Bloomberg, citing people familiar with the matter.
This could mark as one of the biggest push yet automatically recurring sales. However, the project is still in development, according to Bloomberg’s source.
Shares of Apple climbed after Bloomberg released this report on Thursday, closing up by 2.3% at $174.07.
Introduction of hardware subscriptions would be more like auto-leasing program. It could make it easier for customer to afford Apple devices without putting in thousands of dollar upfront for new devices.
The idea is to make the process of buying an iPhone or iPad on par with paying for iCloud storage or an Apple Music subscription each month. Apple is planning to let customers subscribe to hardware with the same Apple ID and App Store account they use to buy apps and subscribe to services today.
Apple has been working on the subscription program for several months, however the project saw traction recently in an effort to launch a “buy now, pay later” service.
The service is expected to launch at the end of 2022, but could be delayed into 2023 or even cancelled, according to Bloomberg’s source.