Apple is looking to offer a hardware subscription. - Cepheus Solutions Inc.

March 29, 2022by Bruce Gillingham0

Apple hardware subscription could be an option or the only way to get Apple hardware in the future.

Apple is currently considering offering a hardware-based subscription for some Apple hardware. Apple is considering a hardware subscription with Apple One and Apple Care as a bundled service for the iPhone, Apple Watch, and Mac. Apple has not made an official announcement as rumors swirl through the tech blogs and forums. Still, according to some Apple Execs, it is being heavily considered.

Apple Subscription issues.

The subscription could allow some potential customers to take a test drive of the Apple products without entirely investing in the hardware, which carries a premium price tag in the tech market. Issues would need to be addressed as using the devices would probably result in some physical wear or damage as it tends to occur with portable devices in day-to-day life. Additionally, given the current costs of these devices and the Apple One and Apple Care services, customers could be looking at subscription costs above $100 a month for a device they will never pay off or own. With technology depreciating so fast, it would seem likely that Apple would require lease or rental agreements to have terms instead of month to month.

 

Apple may have to compete with the used hardware market.

The biggest hurdle for this program to succeed would be the used hardware market. Unlike software companies that have been moving to a subscription model, such as Microsoft, Adobe, Auto Desk, and many others, Apple products have a vibrant second life as used hardware. Given the option of spending $60 or more dollars a month for an iPhone you will never own, it would be much cheaper to purchase a used iPhone for a fraction of the cost than have to deal with monthly reoccurring payments on a termed agreement. One could see Apple making the decision to stop selling the hardware altogether and moving over to a subscription-based model at the start, which would likely cause the end of the used Apple hardware market.

Hardware subscriptions require consideration.

It appears that we will have to wait and see what Apple decides to do with a subscription-based model to see if this is going to be a good thing or another step in the wrong direction for consumers. Many manufacturers, including Apple, have been trying to give hardware of all types a finite life cycle by engineering items to not be repairable. Manufacturers have already been trying to argue legally that the software on the hardware or the hardware itself purchased by consumers doesn’t belong to the consumer. This issue has been called the “Right to Repair” and has been a huge legal battle for many against multiple companies looking to introduce planned obsolescence to all their products, which shortens the life cycle of the product and increases sales.

What do you think Apple will do and do you think this is a good idea? comment below to let us know.

Thank you for taking the time to read this article if you have any questions or comments please post them below and we would be happy to answer or respond.

Our sources for this article:

https://www.bloomberg.com/news/articles/2022-03-24/apple-is-working-on-a-hardware-subscription-service-for-iphones

https://screenrant.com/apple-iphone-hardware-subscription/

https://www.cnbc.com/2022/03/24/apple-planning-iphone-subscription-that-could-launch-this-year-report.html

https://www.barrons.com/articles/apple-stock-subscription-plans-hardware-51648156752

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Related; https://cepheussolutions.com/2021/09/15/update-all-apple-devices-asap/

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