iPhone is the world's most popular model, each generation of iPhone advent will not only cause global consumers to rush to buy, and even there will be a queue to buy, the iPhone is so popular, today there is news that Apple is planning to launch a hardware subscription service!
What is a hardware subscription?
Apple has launched a series of software subscription services, simple understanding is to open membership, software subscription services are well understood, so what is hardware subscription, iPhone itself is a commodity, hardware subscription so that the iPhone is no longer a commodity but has become a service, consumers only need to pay a certain fee every month, then you can use the iPhone for free.
From this point of view, it is a bit like the subscription package launched by the operator to send the mobile phone for free, stipulating the user's monthly telephone fee and service life, you can send the iPhone for free, but in essence there is a difference, the hardware subscription can be understood as our consumers only have the right to use, and there is no ownership right, relative to everyone's monthly rental iPhone to use, when the latest iPhone is launched, under certain rules, users can use the latest version of the iPhone.
Are hardware subscriptions attractive to users?
Hardware subscription service is a certain market, for people with free wealth, as long as the iPhone is new, but for most people the price of the iPhone is still relatively expensive, hardware subscription this model solves this problem to a certain extent, consumers can have an iPhone every month as long as they spend a small amount of money, because this is a subscription service, so there will be no interest on installments.
Hardware subscriptions have another benefit for consumers, the user itself does not own the iPhone, so as long as the user does not artificially destroy the iPhone, then Apple is obligated to repair, for everyone to avoid worries, free of maintenance costs.
Another benefit of hardware subscription is the attraction of using the new iPhone, the reason why it is called hardware subscription, is a long-term continuous consumption model, which must include the terms of replacing the new iPhone, bold guess that consumers can replace the new version of the iPhone through subscription duration, subscription top, plus money, etc., which must be more appropriate than buying themselves.
What does Apple want to do with hardware subscriptions?
The iPhone is so popular, what is Apple's intention to launch a hardware subscription? Apple itself is a listed company, each quarter of the financial statements are very critical, it can be said that Apple is under pressure in terms of revenue and net profit, although Apple is very profitable, but once there is weak growth, poor sales or even negative growth, it will face pressure from shareholders, so in essence Apple launched hardware subscriptions are looking for new growth points!
First, increase user stickiness
Hardware subscriptions require users to spend money every month, the longer the use time, the higher the user stickiness, because consumers have invested a certain amount of cost, want to replace other brands of mobile phones is obviously not cost-effective, it is better to use the new iPhone incense all the time.
Second, subvert the second-hand mobile phone market
To know that the profits of the second-hand market are very considerable, especially the iPhone, when Apple launched a hardware subscription service, it is equivalent to controlling the second-hand market, all the old mobile phones will flow back to Apple, Apple can be refurbished, recycled and other ways to carry out secondary processing, such as users can choose a lower price subscription service, using second-hand mobile phones.
Third, considerable and stable sales
When the hardware user group reaches a certain level, it is very scary, on the one hand, the sales of the new iPhone are guaranteed, on the other hand, the iPhone is continuously accelerated through the replacement method, developing more new users, and increasing the number of hardware subscriptions.
Whether it is the sale of new machines or the recycling of other models, the most important thing is to rely on the global influence of the iPhone, so that more consumers can join the Apple ecosystem, and the user stickiness of this part of the population will be very high, so that sales, profits, and the number of users will be greatly improved.
So it seems that the hardware subscription service is definitely a good business that is profitable and multi-pronged, although this service has not received a positive response from Apple, but the accuracy of the news is still very high, as to whether it can be launched and successful depends on whether the specific subscription service is attractive enough!