Apple is reportedly working on a new iPhone subscription plan for its users. Mark Gurman from Bloomberg wrote that users wouldn’t be able to own the device under this subscription model. Meaning, that until the time users are paying for the subscription, they can keep the device, and when they stop, they will have to return it.
It is worth noting that Google Pixel Pass is a similar program that is not yet available in India, where Google offers the Pixel smartphone to users when they complete two years of payments. But it looks like Apple is going to stick with a fixed monthly fee.
Apple Already Offers iPhone Upgrade Program
Apple already offers an iPhone upgrade program wherein it allows users to pay for a device across 12 to 24 months and upgrade to a new iPhone each year. However, the Bloomberg report suggests that the iPhone subscription program that Apple is planning right now might be in a completely different model than the iPhone upgrade program that already exists.
Right now, if Mark Gurman is to be believed, users won’t be able to own the iPhone under the alleged new subscription program that Apple might launch soon. It will be an interesting proposition from Apple.
All of these business models are available in the US and not in India right now. But were they to come to India, would they be effective? The right answer to this question can’t be given without any data.
But from the way the Indian market runs and behaves, such a subscription model might not work in India as people would rather buy an iPhone in easy instalments with cheap financing than not own the most personal gadget that they use almost every hour. Even in the international markets, this model might be sufficient for people who want a smartphone for a very short period if they are going on travel or something like that. But it doesn’t make sense over the long run.