Some time ago, there was news that Apple will launch a "subscription service" for hardware products, which is closer to the "equipment rental" model in our understanding.
Recently, Mark Gurman from Bloomberg roughly predicted the price of this subscription service.
Depending on the hardware device, a subscription to the iPhone 13 tier can cost $35 per month, the iPhone 13 Pro tier costs $45 per month, and the highest-end Pro Max model is expected to cost $50 per month.
It is clear that Apple plans to launch this "hardware subscription service" to further improve the profit margin of the iPhone.
According to Counterpoint Research' survey data, iPhone users upgrade their devices every 3 years on average, while the average sales price of the iPhone is $825, which means that Apple can average more than $800 in sales revenue from iPhone users every three years.
Apple's "hardware subscription service" may aim to increase the iPhone's sales every three years from $800 to more than $1,000, while allowing more old iPhones to be refurbished and resold.
Compared with the current direct purchase model or installment payment, in the case of the iPhone 13, 13 Pro, and 13 Pro Max, their direct sales are $799 / $999 / $1099, while the three-year "hardware subscription fee" has reached $1260 / $1620 / $1800.
Users don't have to pay hundreds of dollars in full at once, and at the same time, they can upgrade to the latest product model in the first time every year, without having to wait until three years later.
In addition, the "hardware subscription service" may also include software and repair services such as Apple One and AppleCare+, and Apple can further increase revenue.
Compared to "installment" purchases, when you pay all the money in a period of time, you have the device.
But Apple's "hardware subscription" is more like a lease, you pay a monthly fee to get the right to use the device, when the new device is released you can directly replace it, but you do not "own" it.
If this "hardware subscription" service is successfully launched, the three-in-one layout of Apple's vision of "hardware + software + services" will be more complete and more robust.
What are your thoughts on this service from Apple? How much do you think the service is priced per month to be competitive? Feel free to leave a comment in the comments section below to discuss with us!
Would you choose to spend $5,000 to buy and own an iPhone 13 and upgrade to a new iPhone after three years, or $200 a month (about $8,000 for three years) to use the iPhone 13, iPhone 14, and iPhone 15 over the next three years?
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