By Key Points
- Apple shelves iPhone rental service indefinitely
- The program was first rumored in 2022
- Delays linked to software and legal issues
- Apple Pay Later was also discontinued this year
Apple has reportedly dropped plans for its iPhone hardware subscription service, a move that would have let users rent iPhones instead of purchasing them.
First rumored in 2022, this decision appears to be part of a broader reassessment of Apple’s financial offerings.
Bloomberg’s sources confirm that Apple’s service is no longer in the works due to persistent delays caused by software challenges and legal concerns.
With this program now shelved, customers looking for flexible payment options will have to stick to Apple’s existing iPhone Upgrade Program.
According to a report from Bloomberg, Apple has chosen to discontinue its plans to offer the iPhone through a monthly subscription model, a concept it started exploring in 2022.
– The plan to provide iPhones as a monthly subscription service has been canceled.
– This decision… pic.twitter.com/swdEv9ORK2
— Tech News 𝕏 (@technewsq) December 19, 2024
What Was the Subscription Service?
Apple’s proposed service aimed to offer a new way to access the latest iPhone models without the upfront cost of ownership. Instead of buying a device, users would pay a monthly fee to essentially rent an iPhone.
This model would have allowed for frequent upgrades, with users returning their phones once they opted out or stopped paying.
While details were never fully disclosed, the service was expected to be different from Apple’s iPhone Upgrade Program. The Upgrade Program, launched in 2015, allows users to pay in installments and eventually own their phone after completing the two-year payment plan.
In contrast, the scrapped subscription service seemed to lean towards a rental model, meaning users wouldn’t own their device outright.
Apple’s Financial Strategy Shift
This cancellation isn’t the only change in Apple’s financial strategy. In March 2024, Apple also discontinued its Apple Pay Later service. Initially announced in 2022, Apple Pay Later offered customers a way to split purchases into four equal payments over six weeks — a classic Buy Now, Pay Later (BNPL) approach.
The decision to discontinue these services signals a potential shift in Apple’s priorities regarding financial offerings. Rising costs, regulatory scrutiny, and increasing competition in the fintech space may have influenced the move. Instead of expanding its financial products, Apple seems to be focusing on streamlining its existing services.
Why This Move Makes Sense
For many, the idea of a subscription service for a high-value product like an iPhone brings mixed feelings. On one hand, it lowers the entry cost for acquiring the latest device. On the other, it adds yet another monthly expense — something consumers are wary of in a strained global economy.
Moreover, Apple’s hardware sales remain robust. The company continues to see strong demand for its iPhones, with customers generally willing to pay outright or use financing plans.
Adding a rental service might have complicated Apple’s product offerings without significant financial benefits.
Apple’s decision to scrap the iPhone subscription plan could reflect a broader realization: in a market full of ongoing costs, customers prefer ownership over rentals. For now, those looking for flexible ways to upgrade their iPhones will need to stick with Apple’s existing financing programs.
