Apple is working on an iPhone hardware plan that will essentially allow customers or users to lease their device and get a new model every year, Bloomberg’s Mark Gurman said.
The Apple Far Out event is just around the corner and people are already super excited about the products the company is about to launch. Apple is expected to launch the iPhone 14 series along with Apple Watch on September 7. There are already several leaks, rumors and reports on the market that provide insight into the expected price, design and other specifications. Now it is learned that Apple is working on an iPhone hardware subscription service that will essentially allow users to lease their device and get a new model every year. It is known that iPhone 14 is expected to be in stores from September 16.
“Apple Inc. is working on an iPhone hardware subscription service that will shake up the buying process, essentially allowing users to lease their device and get a new model annually. As with other services of this nature, Apple’s rationale for doing so is very simple: make more money,” said Bloomberg’s Mark Gurman.
Gurman, explaining the rationale behind working on a subscription service, said, “the average iPhone user upgrades the device every three years. That’s actually a less frequent rate than about a decade ago, when carriers pushed subsidies and rebates every two years.” According to Counterpoint Research shows that the average iPhone retail price is about $825. That means Apple generates just over $800 from the typical iPhone customer every three years. That’s exactly why Apple is working on a subscription service.”
With the help of the subscription service, Apple can generate more money per consumer. While the customers will also benefit as they will not have to pay hundreds of dollars upfront for a new iPhone. And of course, they can also get the latest model every year instead of waiting for a reason to switch phones in a few years.
At the price tag of the iPhone 14, the phone is expected to cost less compared to the iPhone 13 when it launched in 2021. According to a report by TrendForce, a market research firm, Apple could consider launching the iPhone 14 series with a launch range of around Rs. 60,000. The price of the standard iPhone 14 can start from $749 (about 60,000), which is lower than what the iPhone 13 launched for ($799).
The report suggests that the iPhone 14 could come with a price tag of $749, the cost could go up to $799 later. The iPhone 14 Max could come with a starting price of $849 (about Rs. 68,000), which could go up later. up to $899. The price of the iPhone 14 Pro can start at $1,049 (about Rs. 83,000) and can go up to $1,099. While the iPhone 14 Pro Max may have a starting price of $1,149 (approximately Rs. 91,000), which could go up to $1,199 later on.